Aurangabad Court: Compensation Awarded for Delayed Irrigation Project

Here's a breakdown of a recent court case involving construction delays and arbitration in Aurangabad.

The People Involved

The case was between the Command Area Development Authority in Aurangabad and Hule Constructions Private Limited, led by Vishwanath Dagdoba Hule. The case also involved the State of Maharashtra's Water Resources Department.

What Happened?

The disagreement started when the Command Area Development Authority hired Hule Constructions to fix and upgrade 19 irrigation tanks in Beed, Maharashtra. The project was supposed to be finished by November 16, 2007, but was delayed by three years.

The Dispute Begins

Hule Constructions said the delays happened because the Authority didn't finish necessary surveys on time. They asked for a formal process to get compensation for these delays. This process started after several appeals and a special civil case filed in 2012.

The Arbitration Claims

Hule Constructions made several claims, including:

• Loss of Business Profit: Asked for Rs. 695.59 lakhs but was rejected.
• Loss of Overhead: Asked for Rs. 494.98 lakhs, partly approved at Rs. 67.35 lakhs.
• Losses Due to Productivity Reduction: Asked for Rs. 621.82 lakhs, partly approved at Rs. 335.20 lakhs.
• Delayed Payment Interest: Asked for Rs. 209.58 lakhs, partly approved at Rs. 167.66 lakhs.
• Price Increase: Fully approved at Rs. 245.23 lakhs.

Court's Decision

The sole person deciding the case partly agreed with some claims, awarding Hule Constructions a total of Rs. 10,54,54,600. The Command Area Development Authority challenged this decision, saying that the process went beyond its limits and broke contract terms.

Legal Arguments

The Authority's main points were:

• The decision went against the contract terms.
• There was no rule for price increases in the contract.
• Delays were blamed on the contractor, not the Authority.

Final Judgment

Judges Vaishali Patil-Jadhav and Arun R. Pedneker dismissed the appeal on January 29, 2026. They found no mistake in the arbitration process and noted that the Authority was responsible for the initial delays. The court upheld the decision to award compensation to Hule Constructions.

What's Next?

The Authority asked to pause the judgment, but it was denied. The court decided no further pause was needed since the appeal was dismissed.

In summary, the court ruled in favor of Hule Constructions, confirming that they deserved compensation due to the delays caused by the Authority.