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| September 9, 2005 | Friday | Sha’aban 4, 1426 |
SHC tells PIA to pay contractor Rs7.55m
KARACHI, Sept 8: The Pakistan International Airlines Corporation has been asked to pay Rs7.55 million to a contractor for its failure to discharge contractual obligations. The partnership firm, Pakistan Engineering Consultants, maintained in its recovery suit, instituted in the Sindh High Court through Advocate Yawar Faruqui, that it was awarded a contract by the PIA for extension and modernization of its flight kitchen in Karachi in 1983. The value of the work was estimated at Rs43.9 million and the plaintiff firm was to get three per cent consulting charges.
The plaintiff said that it completed the various formalities, including furnishing of bank guarantee and execution of performance bond, within the stipulated period. However, the corporation delayed the approval of its drawings and provision of the mobilization advance. There was considerable delay nearly at every stage, which hampered the work. When the managing partner of the firm died, the corporation chose to terminate the contract, claiming that the partnership stood dissolved.
Justice Rehmat Hussain Jafri, who heard the suit, observed that the documents produced indicated that delays were caused by the defendant. The plaintiff was entitled to claim Rs75,55,920 together with 15 per cent mark-up from the date of filing of the suit till that of payment of the decretal amount. The suit in respect of injunction was also decreed as prayed with costs.—Staff Reporter
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