Pady Building Contractor v Seychelles Housing Development Corporation (278 of 2004) [2009] SCSC 32 (31 May 2009)

Pady Building Contractor v Seychelles Housing Development Corporation (278 of 2004) [2009] SCSC 32 (31 May 2009)

The court held that the agreement to pay 86.66% was not binding for final payment as it was interim, not authorized by the employer (MLUH), and based on miscalculations. The final authority for payment rested with MLUH, which certified and paid Rs. 562,558.87 as the final settlement. No further sums were due.

Citation
[2009] SCSC 32
Parties
Plaintiff: Pady Building Contractor; Defendant: Seychelles Housing Development Corporation
Court
Supreme Court
Jurisdiction
Seychelles
Judgment Date
31 May 2009
Case Number
278 of 2004
Procedural Posture
Civil / Judgment
Outcome
Plaintiff's action dismissed with costs.
Legal Topics
Final Payment Under Construction Contract, Authority to Bind in Contract, Valuation of Works, Termination of Contract, Interim Vs Final Payment
Source Language
English
Contract Law Construction Law Final Payment Under Construction Contract Authority to Bind in Contract Valuation of Works Termination of Contract Interim Vs Final Payment

Case Brief

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Parties

Pady Building Contractor

Plaintiff

Seychelles Housing Development Corporation

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the plaintiff is entitled to further payment beyond the amount certified as final by the employer
  2. 2 Whether the agreement to pay 86.66% of the contract price was binding for final payment purposes
  3. 3 Who had authority to determine final payment under the contract

Ratio Decidendi

The court held that the agreement to pay 86.66% was not binding for final payment as it was interim, not authorized by the employer (MLUH), and based on miscalculations. The final authority for payment rested with MLUH, which certified and paid Rs. 562,558.87 as the final settlement. No further sums were due.

Court Disposition

Plaintiff's action dismissed with costs.

Orders

  • Plaintiff's claim for further payment is dismissed.
  • Plaintiff to pay costs.