Council asked to pay MVR 300K over Villimale market
The company alleged that the entire project was completed by 5 July 2022; MVR 667,866 due for those days was paid an year later by the city council.
By
Fathmath Ahmed Shareef
The Civil Court has ordered the Male City Council to pay MVR 364,965, owed to the company entrusted with the construction of the temporary local market in Villimale.
The construction of a temporary market in Villimale was handed over on 2 February 2022. Under an agreement with Glorious Trading and Shipping, the work was awarded for MVR 2.5 million, to be completed within 45 days.
On May 31, 2023, the company filed a lawsuit in the Civil Court against the Male City Council, alleging that the company had to take on more work due to delays in the commencement of work and changes in the drawings and work area, all caused by the city council.
The company has sought a total of more than MVR 1 million in compensation from the Male Council. It is:
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MVR 364,965 not received from work done outside the contract
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MVR 781,541for the expenditures made by Glorious Company due to delays in the work
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MVR 251,369 as penalty for late payment of bills
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MVR 500,000 as indirect damages
However, the Civil Court ruled on Sunday that only MVR 364,965 was payable for work done outside the contract. The court ordered the city council to pay the money within 14 days.
The land on which the market is to be built has changed three times, according to a lawsuit filed by Glorious. The company had brought this difficulty to the attention of the city council on several occasions and had been assured by the council that it will take responsibility for the delay.
According to the chargesheet:
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Land was allocated for the market work on 31 March 2022, one year after the work was awarded to the company
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Since then, additional work had been assigned outside the agreement; MVR 364,965 is owed for the work done using the company’s own resources
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MVR 1.7 million for 72% of the work that was completed has been paid
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The entire project was completed by 5 July 2022; MVR 667,866 due for those days was paid an year later
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In addition, millions of Rufiyaa owed have still not been paid
In response, the council said it had paid Glorious for its work and that it did not consider the amounts being requested to be included under the agreement. The work related to the alleged additional works were also done by the company itself without the council’s issue and therefore it is not liable to pay the money.
Then, the civil court ruled:
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The documents exchanged on both sides show that the city council did ask Glorious Company to remove fences in the area during the changes to project venue
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Both parties were aware this work was not included in the agreement
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Therefore, it is proved that MVR 364,965, which is alleged to be paid for work done, is due to the company by the Male City Council.
The court then held that the other figures sought by the company in the case was not due to be paid as it did not produce any evidence documents indicating that the expenses were actually incurred by Glorious Company.
