EMAIL/REGISTERED POST
19.01.2024
To,
Mr. Faizal Rizwi,
Advocate,
Opp. Millennium Plaza,
S.A.A. Rizvi Road, Raipur,
(C.G.)-492001
Tel: 0771-2536620, 2229075
Subject: - Reply on behalf of M/S Devi Construction & Mr. Devi Prasad Dalai
(my Clients) to your legal notice dated 02.12.23
Mr. Rizwi,
1. I am in receipt of the subject mentioned legal notice issued by you to my
Clients on behalf of M/S Shreejikrupa Project LTD (SKPL) represented through
its Director Sanjay Kumar Varsani Address: 289, Sundar Nagar, Behind C.S.E.B.
Office, Raipur, Chhattisgarh – 492013 (‘SKPL’).
2. Accordingly, under the instructions of my clients i.e. the Noticee No.1 &
2, I am hereby issuing the following reply: -
a. At the outset, you may note that each and every allegation contained in your
legal notice under reply are denied in seriatim except up to the extent that they are
matters of record. Nothing contained in the said legal notice be deemed to be
admitted, unless so admitted specifically.
b. That, SKPL had approached my client, M/S Devi Construction, for the
supply of moorum for NMDC pellet plant site in Nagarnar, Chattisgarh. Pursuant
thereto, an agreement dated 16th January, 2022 (‘the Agreement’) that was executed
between SKPL and my Client-the Noticee No.1. The Agreement in question at cl.
10 specifically provided that the rates for supply of morrum was to include the
royalty and miscellaneous expenses. The said cl.10 is extracted hereinbelow for
ready reference:
“The above rates is including royalty and miscellaneous expenses”
c. Further, cl. 8 of the said Agreement prescribed that the GST on the
receivables was to be paid separately. Admittedly, the quarry was finalized by
SKPL, NMDC, and Mecon and was located behind Middle School, village
Chokawada, Nagarnar, Chattisgarh. This position is contained in cl. 12 of the
Agreement.
d. I hereby bring it to your notice that, cl. 10 of the Agreement in question,
merely envisaged that the amounts paid to my Client was to include the Royalty
Expenses. It was nowhere stipulated in the Agreement that the submission of the
royalty clearance documentation was to be carried out by my Clients .
e. This position is further reinforced from the terms of the principal agreement
between NMDC Ltd. and SKPL which provides that, all clearances/approvals
required from statutory authorities was to be secured by SKPL. Therefore, all the
royalty documents related to the said moorum work submitted to NMDC were in
the name of SKPL.
f. Accordingly, SKPL itself officially requested the concerned tehsildars
through letters for royalty clearance certificates in their name. This position is
reflected in the various royalty certificates issued in the name of SKPL.
g. I put it to you that my Clients had no involvement in this process, and all
documents related to royalty clearance submitted to NMDC which solely from
pertained to SKPL. I further put it to you that my Clients never submitted any
royalty clearance document to SKPL or NMDC.
h. You may note that cl.9 of the principal Agreement between NMDC Limited
and SKPL, explicitly prohibited SKPL from engaging any sub-contractor without
the prior approval of NMDC Ltd. This contractual provision underscores the
responsibility of SKPL in respect of obtaining necessary approvals before
involving any sub-contractor in the project.
i. Be that as it may, in terms of the Agreement, my client-the Noticee No.1
responsibly procured moorum from Kotpad, Odisha, subsequent to your client
presenting the receipts and ‘Y Forms’ issued in the name of SKPL. It is essential
to emphasize that this action was undertaken in good faith, and no fraud was
committed.
j. That, this position is fortified by the certificate issued by the testing agency
Mecon Limited's in its report dated 06.05.2022 which states that that my clients
have provided the moorum as per the stipulations of the Agreement. The adequate
delivery of moorum by my Client-the Noticee No. 1 has also been certified by the
Office of the Principal, Govt. Engineering College, Jagdalpur vide a certificate
dated 18.05.2022.
k. Therefore, you may note the allegations in para 8 and 9 of the legal notice
under reply to the effect of supply of sub-standard moorum by my Client is an
eyewash and is patently false. It is a desperate afterthought designed to evade the
contractual liabilities of SKPL.
l. The allegations of reworks carried out by SKPL on account of my Client’s
alleged defaults and the amounts indicated in respect thereof are bereft of any
substance and are denied. I put it to you that nothing remains outstanding at the
end of my Clients.
m. In the above backdrop, you may note that the allegations in the notice under
reply to the affect that my Clients have purportedly furnished fraudulent royalty
clearance certificate is misconceived in as much as during the operation of the
Agreement, there was no occasion for my Client to provide any fraudulent
clearance certificate. The allegations in your notice dated 11.03.23 are wrong,
false and denied.
n. Be that as it may, I put it to your notice that, my Client-the Noticee No.1 is
yet to receive an amount of Rs. 32,00,000/- (Rupees Thirty Two Lakh) for the
supplies made by it in furtherance to the Agreement.
o. In addition, an additional Rs. 1,80,000/- (Rupees One Lakh Eighty
Thousand) remains unpaid for the work at your client's hospital construction
project at Jeypore, Odisha.
p. I am also constrained to state that, despite diligently adhering to the terms
of the agreement with your client and acting under their instructions, my client
has endured significant ordeal, including legal issues, without any fault on their
part. It is imperative to recognize that my client is the actual victim in this
situation.
q. Under these circumstances, I call upon you to amicably settle the accounts
by paying Rs. 34,80,000 (Rupees Thirty-Four Lakh Eighty Thousand)
approximately within 15 days of receiving this notice. Additionally, you are liable
to pay Rs. 25,000 (Rupees Twenty-Five Thousand) towards the cost of this notice.
A copy of this notice is retained in my office for future use.
Regards,
SOUMYA PRIYADARSHINEE,
Advocate-on-Record.
Supreme Court of India.
+919971376238
CC: -
M/S Shreejikrupa Project LTD (SKPL) represented
through its Director Sanjay Kumar Varsani Address:
289, Sundar Nagar, Behind C.S.E.B. Office, Raipur,
Chhattisgarh – 492013.
