Dams fund: Court directs contractor to deposit over Rs1.4m, 15pc interest

PESHAWAR: In a unique decision of its kind, a local court has directed a contractor to pay and deposit 15 percent interest per annum of the principal amount of Rs14,21,555 to be paid to a government department in the Prime Minister-Chief Justice of Pakistan dams fund.

The judgment was passed by Additional District and Sessions Judge, Haripur, Ijaz Ahmad. Its copy is available with The News. It said that if the appellant Ziaul Haq, a contractor, had paid the instalment to the government department in due course of time the amount could have been utilised on other development projects.

"By not paying the unpaid amount, the contractor has deprived the state of Pakistan of carrying out some development work since 2003. Rather, he used the courts to channelise the unpaid amount to his own business or to his own benefit," the judgment said. It questioned that had it been a bank loan, the appellant would have kept on paying profit at the rate of 15 percent per annum.

On the other hand, the judgement noted, the appellant failed to place on file any receipt, voucher or other documents to show that he had paid full contractual amount and thus discharged his obligation.

"Thus there seems no justification as to why the appellant should not pay the outstanding amount along with the profit, which could be imposed at normal bank rates. Thus I deem it appropriate that the appellant is liable to pay Rs14,21,555 along with 15% per annum as profit payable on the principal amount," the court ordered.

In the judgment, the judge explained that when the government is in dire need of money for the construction of dams as we are about to face severe water shortage in years to come and the dam could not be constructed due to non-availability of money as those in authority as well as in businesses have totally caused the collapse of Pakistan's economy.

The judge pointed out that out of necessity the honourable Supreme Court of Pakistan was compelled to take initiative for the construction of dams by launching the Supreme Court dams fund with the State Bank of Pakistan. "It is the duty of courts to be custodian of government exchequer as well as of the tax/cess payer. The respondent (Tehsil Municipal Administration Ghazi) was within its bounds to recover the unpaid amount as arrear of Land Revenue but they failed to do so. Thus they too cannot claim the profit. It would be in the interest of the state that the profit so fixed is to be deposited in the Supreme Court of Pakistan account meant for dams' construction," the judge stated in the order.

It said the respondents have not filed cross appeal against the judgment of the trial court and, therefore, they aren't entitled to receive the profit. "Courts have to protect interests of taxpayers as well as of the exchequer, notwithstanding follies or illogical and sometimes casual attitude of custodian of public exchequer," the order stated.

Earlier, a trial court (civil court) had granted decree of Rs14,21,555 and imposed penalty at the rate of 1 percent per day default.

When the contractor moved the Peshawar High Court, Abbottabad Circuit Bench, against it, this was partially decreed to the extent of grant of decree of Rs14,21,555 and turning down penalty at the rate of 1percent per day default.

The high court bench remanded the case back to district and sessions judge Haripur for further proceedings in pursuance of amendment made in section 18 of Khyber Pakhtunkhwa Civil Courts Ordinance, followed by notification of Peshawar High Court, Peshawar No. 137/J dated June 3, 2017.

The brief facts of the case are that the plaintiff/respondent (Tehsil Municipal Administration Ghazi|) had filed suit for recovery of original unpaid amount along with recovery of 1 percent per day fine, which in total comes to Rs30,85,503.