The High Court in Madras has given a decision involving Southern Railways and Engineering Products (I) Limited. The court decided that Southern Railways must pay a large amount because of delays and extra work done by Engineering Products (I) Limited.
Back in 2000, Engineering Products (I) Limited got a deal from Southern Railways to work on the MRTS Phase-II project. The job was supposed to be done in a year, but it took more than four years. This delay led to a lot of disagreements and claims.
Engineering Products (I) Limited asked for a 30% increase in costs because the work took longer than planned. The court agreed, saying Southern Railways should pay ₹1,22,12,625 for the extra work during the extended period.
"The entire payment requested by Engineering Products (I) Limited for the 30% increase in the value of work done during the extended period is granted."
Engineering Products (I) Limited had to build extra coffer dams, which wasn't part of the original deal. The court agreed with Engineering Products (I) Limited, awarding ₹96,95,000 for this extra work.
Engineering Products (I) Limited claimed they lost money when station building work was removed from their responsibilities. The court found this claim valid and awarded ₹8,00,000.
Justice N. Anand Venkatesh pointed out that the Tribunal made some mistakes, especially in using a formula that wasn’t in use at the time. The court fixed these errors, making sure the compensation was fair.
Southern Railways has to pay a total of ₹2,27,07,625, including interest, within eight weeks. This decision highlights the importance of sticking to contract terms and the potential costs of delays.
