Specialty Hospital embroiled in dispute…BK Int’l moves to Indian courts for $$$M owed by contractor

Sep 05, 2014 News

BK International Incorporated yesterday announced that it will be moving to the courts in India in an effort to recoup outstanding money owed by Surendra Engineering Corporation Limited.
Surendra Engineering is an Indian company which was contracted by the Government of Guyana to construct the US$18M Specialty Hospital at Turkeyen, East Coast Demerara. It had been involved also in the $2.5B construction of the Enmore Packaging Plant and the $800M controversial drainage pumps.

BK International claims it was contracted by Surendra Engineering to drive piles but is now owed over $400M.

The move to the courts in India comes after the Commercial Court here in Guyana lifted an Interim Injunction restraining Brijen Parikh, Managing Director of Surendra Engineering Corporation Limited, from leaving Guyana without settling the debt to BK International.
BK International in a statement yesterday said that prior to the decision to take legal action in India, they had sought the intervention of the Indian High Commissioner to Guyana but saw no progress.
It was explained that BK International, who is a sub-contractor, is owed $180M for work done between May and July, 2014. Three invoices were dispatched to Parikh and certified by the engineer on site. However, Parikh indicated that BK International Inc. cannot be paid citing the budget cut to the project as the reason.
BK International said that this was despite the fact that Surendra Engineering had entered into a written agreement to supply and drive 2,000 pieces of 65-feet long greenheart piles at Turkeyen, East Coast Demerara.
The agreed sum for the execution of the contract by BK International is $673M.
Surendra Engineering agreed to pay BK International for quantities of work done and certified by the engineer on site. Part of the contract stated that payment was to be made within two weeks after submission of the invoices by the BK International. This was not done, the construction company said.
On July 21, 2014 BK International filed for and received an Interim Injunction against Surendra Engineering Corporation Limited. The injunction, which was granted by Justice Rishi Persaud in the Commercial Court, followed an Ex-parte Application by way of Affidavit by BK International Inc.
The injunction restrained the defendant, from leaving or attempting to leave the jurisdiction pending the hearing and determination of the action unless and until the defendant lodges with the Registrar of the Supreme Court the sum of $180M as security in the event that judgment is obtained against the defendant.
According to BK, on July 23, Justice Persaud ruled that BK International can recover the sum of $180M with costs in the sum of $450,000.
Justice Persaud also ordered that there be a stay of execution for a period of two months and discharged the Interim Injunction. After the order by Justice Singh, Parikh left the jurisdiction without payments being made to BK International.
The Company said it is now exposed for over $400M on the Specialty Hospital Project.
BK International is being represented by Robert Ramcharran while the lawyer for Surendra Engineering is Mr. Vidyanand Persaud.
Back in 2012, Cabinet Secretary Dr. Roger Luncheon had announced that Cabinet had offered its “no objection” to the award of the contract to the value of US$18.1M to Surendra Engineering for the construction of the Specialty Hospital.

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