Bombay High Court: Proteus Ventures Ordered to Pay Archilab Designs for Unpaid Work

In a recent decision, the Bombay High Court confirmed a decision made by an arbitrator that favored Archilab Designs. The case was about unpaid bills for design and construction work Archilab did for Proteus Ventures.

The Background Story

Proteus Ventures LLP hired Archilab Designs to work on several projects, including "THE MESH" office spaces. Even though Archilab finished the work, they weren't fully paid. The total project cost was about Rs. 3.93 crores, but Archilab only got Rs. 2.04 crores. Proteus admitted they owed Rs. 88.08 lakhs but didn't pay it.

Arbitration Journey

The arbitration process started on June 23, 2023, with an arbitrator chosen by the Council of Architecture. Proteus tried to make things difficult by questioning the arbitrator's qualifications and the status of Mesh Co-Works, a brand under Proteus.

"Proteus has thrown everything at the dispute trying to block every step that Archilab took to get its money."

Court's Decision

Judge Somasekhar Sundaresan decided in favor of Archilab, confirming the award of Rs. 88.08 lakhs and an extra Rs. 24 lakhs for the stress caused. The court found that Proteus' attempts to avoid payment were not justified and noted that the arbitrator acted fairly.

Key Points from the Judgement

• Interest Rate: The court agreed on an 18% yearly interest rate on the unpaid amount, rejecting a higher rate that was mentioned in the agreement.
• Compensation for Stress: The court supported the award for stress, citing Proteus' unreasonable behavior.
• Limited Liability: The court removed the joint responsibility of Proteus' partners, keeping the award against the LLP alone.

The court's decision ensures that Proteus Ventures must pay Archilab the money owed, providing justice for the work completed.