Aurangabad Court: Dam Project Payment of ₹5.76 Crore Overturned Due to Contract Misinterpretation

Quick Summary:
A court in Aurangabad has canceled a previous decision that gave ₹5.76 crore to G.N.I. Infrastructure Pvt. Ltd. for a dam project. The court found that the original decision on price increases was wrong.

Background of the Case

In 1995, G.N.I. Infrastructure Pvt. Ltd., then called Gurunanak Industries, got a contract to build part of the Nimna Dudhana Project in Jalna District. The project, which involved making an earthen dam, was supposed to be finished by March 1997. However, because of various delays, the work continued until June 2013.

The Argument Over Payments

G.N.I. Infrastructure Pvt. Ltd., represented by Khushbirsing, said that the government did not pay the full amount owed under the contract, claiming a shortage of ₹5.76 crore. They argued that the price increase part of the contract was not applied correctly, leading them to file a case in 2017.

"Despite repeated requests since 2016, the defendants allegedly failed to release the balance amount," the claim stated.

Court's First Decision

The first decision by the District Judge-1 in Jalna on August 9, 2019, was in favor of G.N.I. Infrastructure Pvt. Ltd., giving them the claimed amount plus interest. The court found that the Executive Director of G.M.I.D.C. Sinchan Bhavan in Aurangabad and others had not paid in full according to the contract's price increase terms.

Appeal and Change of the Decision

The Executive Director of G.M.I.D.C. Sinchan Bhavan in Aurangabad and others challenged the decision. They argued that payments, including price increases, were made according to each Running Account (R.A.) Bill over the years. They also claimed that the case was filed too late.

Main Points in the Appeal

• Time Limit: The defendants said the case was filed too late since the work was finished in 2013, and the case was filed in 2017. However, the court found the case was filed on time, as the final bill was paid in 2016.

• Price Increase Misunderstanding: The appeal focused on the misunderstanding of the price increase part of the contract. The court agreed with the defendants that the increase should be calculated for each R.A. Bill period, not averaged over the whole project time.

Final Decision

On January 17, 2026, Justices Arun R. Pedneker and Vaishali Patil-Jadhav decided in favor of the Executive Director of G.M.I.D.C. Sinchan Bhavan in Aurangabad and others, canceling the previous decision. They concluded that G.N.I. Infrastructure Pvt. Ltd.'s claim for extra price increases was not justified under the contract terms.

"We find that no case is made out for grant of ₹5,76,25,112 towards escalation cost," the decision stated.