Kamakhyanagar: A commercial court in Cuttack Monday ordered the sealing of the Rengali Left Bank Canal Division office in Dhenkanal district after authorities failed to clear long-pending dues owed to a contractor.
Court officials sealed the office of the Superintendent Engineer at Kamakhyanagar in compliance with strict directions issued by the Cuttack Commercial Court.
According to reports, the contractor had undertaken canal construction work worth about Rs 9 crore in 2004. However, the project was halted midway after the department failed to provide the full work site. Payments due to the contractor were also withheld.
Seeking redress, the contractor approached arbitration, where dues of approximately Rs 52 lakh and Rs 29 lakh for two works were recognised.
With accumulated interest, the total outstanding amount has now risen to over Rs 3 crore, company representatives said. The irrigation department challenged the claims in various courts, including the district court, high court and Supreme Court, but failed to obtain relief.
Despite directions from the apex court, the dues remained unpaid, prompting the contractor to move the commercial court in Cuttack. After nearly two years of proceedings, the court ordered attachment of the office. The premises were sealed in the presence of officials Monday.
