HC upholds firm deadline for slum housing project
Real Estate

HC upholds firm deadline for slum housing project

The recent dismissal of a petition by a city-based construction company, Aishwaryagiri Constructions Limited, by the high court underscores the principle that a contractor or tenderer cannot assume complacency and prolong work, especially when the construction involves housing for slum-dwellers.

The legal challenge was against the Karnataka Slum Development Board (KSDB), which rejected the company's representations seeking an extension of the deadline for completing the construction of 1,978 houses for slum-dwellers, a project initiated between 2014 and 2017 in the Rajarajeshwari Nagar area.

Initially granted a two-year extension after failing to meet the initial deadline, the company faced contract termination on July 27, 2021, when it failed to complete the work and sought yet another extension. The high court directed KSDB to consider the company's representations, but after rejection, the firm returned to the high court.

Justice Nagaprasanna, upon reviewing the records, emphasized that KSDB's contract termination had achieved finality as it was not challenged by the co-ordinate bench. The judge highlighted that a new tender had been issued, and only the work order needed to be issued.

Out of the 1,978 houses planned for construction in nine slums, 674 are completed, 505 are incomplete, and 799 are yet to commence. The judge remarked that the urgency of improving living conditions for slum-dwellers should not be underestimated. Despite being granted multiple extensions, the petitioner failed to complete the work.

In a metaphorical expression, the judge noted, "The petitioner is an unwilling horse, though taken to a lakebed, is not ready to drink water," emphasizing that the petitioner, despite receiving repeated extensions, did not fulfill its obligations. Consequently, the judge concluded that no indulgence could be shown.

The recent dismissal of a petition by a city-based construction company, Aishwaryagiri Constructions Limited, by the high court underscores the principle that a contractor or tenderer cannot assume complacency and prolong work, especially when the construction involves housing for slum-dwellers. The legal challenge was against the Karnataka Slum Development Board (KSDB), which rejected the company's representations seeking an extension of the deadline for completing the construction of 1,978 houses for slum-dwellers, a project initiated between 2014 and 2017 in the Rajarajeshwari Nagar area. Initially granted a two-year extension after failing to meet the initial deadline, the company faced contract termination on July 27, 2021, when it failed to complete the work and sought yet another extension. The high court directed KSDB to consider the company's representations, but after rejection, the firm returned to the high court. Justice Nagaprasanna, upon reviewing the records, emphasized that KSDB's contract termination had achieved finality as it was not challenged by the co-ordinate bench. The judge highlighted that a new tender had been issued, and only the work order needed to be issued. Out of the 1,978 houses planned for construction in nine slums, 674 are completed, 505 are incomplete, and 799 are yet to commence. The judge remarked that the urgency of improving living conditions for slum-dwellers should not be underestimated. Despite being granted multiple extensions, the petitioner failed to complete the work. In a metaphorical expression, the judge noted, The petitioner is an unwilling horse, though taken to a lakebed, is not ready to drink water, emphasizing that the petitioner, despite receiving repeated extensions, did not fulfill its obligations. Consequently, the judge concluded that no indulgence could be shown.

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