In a major development, the Belagavi Municipal Corporation has been directed to pay ₹12.4 crore to Hygriva Company following an arbitration award. The ruling was delivered on Saturday (12th), in a case where Hygriva had initially filed a ₹35 crore claim against the Corporation.
The dispute dates back to 2008, when under the Urban Upliftment Scheme launched by then Chief Minister B. S. Yeddyurappa, ₹100 crore was sanctioned for development works in Belagavi. Hygriva Company was awarded the contract for executing several of these projects. However, due to delays in project initiation and deviations from the approved plans, the company incurred increased expenses. It later sought compensation, stating that the work done exceeded the original scope in some areas and demanded that billing be done at revised rates.
The claim was taken up for arbitration by an arbitrator appointed by the Dharwad Bench of the Karnataka High Court in 2021. After a prolonged hearing, the arbitrator issued the final order on Saturday. While Hygriva had claimed ₹35 crore across 12 heads, the arbitrator awarded ₹12.4 crore.
Retired Engineer R. S. Naik, former City Engineer V. M. Hiremath, and then Legal Advisor Adv. U. D. Mahantshetty played a key role in compiling and presenting documents before the arbitrator. Their timely efforts are believed to have significantly reduced the liability from ₹35 crore to ₹12.4 crore.
It now remains to be seen whether the Municipal Corporation will accept the arbitrator’s decision and release the payment or file an appeal. Notably, in a similar case last year concerning Shahapur Road, the Corporation avoided a ₹20 crore payout by returning the acquired land instead of compensating.
The arbitration amount of rs 12.50cr. Which is ordered by the court can be challenged in higher court, as the contractor is not eligible for any extra claims. The corporation authority is requested to have meeting with former ex eng, ae, aee etc and file appeal in the higher court.