Bengaluru: The Karnataka High Court on Tuesday ordered issued notices to state government, Bangalore Development Authority (BDA) following a petition filed by a leading private construction company alleging non-payment of dues nearly up to Rs 5 crore.
The petitioner company, IL&FS Engineering and Constructions Company Limited, has sought directions for winding up of the body for failing to make the payment as awarded by the arbitral tribunal.
The petitioner company has alleged that BDA has failed to pay nearly Rs 5 crore that was awarded by the tribunal. The award is with regard to the work carried out by the company over laying of six-lane Outer Ring Road connecting Mysuru Road and Magadi Road, which was completed in 2007. While seeking directions to wind up BDA, it argued that as the body is a corporate, like any other corporate or public sector undertaking as per the Supreme Court. Hence, as the body failed to follow the directions of the tribunal in paying the full amount, the BDA is liable to be wound while applying the same principles of a corporation under the Companies Act, 1956.
It further stated that BDA created a dispute and had deducted from the award amount towards VAT difference which was totally unjustified. It has sought directions to appoint an officials liquidator to take over the assets of the BDA and discharges its liabilities. The matter stands adjourned.
Bail to police constable
The High Court on Tuesday granted bail to Sudhakar, the suspended police constable attached to AMPC Yard police station in Ballari, who was arrested on charges of corruption.
