Kathmandu. In the claim of compensation for the construction of a bridge involving A class construction company Pappu Construction, it has come to light how the construction has misused the factual evidence for the compensation claim.
Pappu’s bullying has been revealed in the verdict of the insurance committee regarding the complaint registered on June 27, 2017. The full text of this verdict has been published in the decision collection Volume 5 published by the Nepal Insurance Authority.
Pappu Lumbini JV had filed a complaint with the NRA alleging that the flood damaged the construction materials and the structure of the under-construction bridge while constructing the bridge on the Kamala River under Rajbiraj section of Saptari.
Pappu Lumbini JV had demanded compensation for the damage caused to the construction materials, the structures and the vehicles at the work site due to the massive flood in the Kamala River from July 27, 2019 to September 15, 2019 and on September 1, 2018.
Pappu Lumbini JV had filed an application stating that it was the responsibility of the parties to comply with the terms of the insurance contract and the insurer could not escape from paying the claim of loss arising out of the insurance premium due to the risk mentioned in the contract.
Surveyor’s opinion and insurer’s zikir:
The surveyor had submitted a report that the surveyor could not give the insurance claim as the insurance company had deputed SeaMak Consultancy Pvt Ltd for the damage assessment.
Nepal Insurance did not mention the date and time of the incident in the first information letter of the insured on September 15, 2019, and in the second information letter registered on September 1, 2019, mentioned that the flood occurred on September 1, so the insured could not confirm the date of the incident from the beginning. He had taken a diger.
Pappu Lumbini JV had submitted a letter issued by Siraha Municipality Ward No. 6 and Siraha Municipality Executive on different dates to confirm the flood incident for insurance claims. The ward executive of ward no. 6 had mentioned that the flood occurred from July 27 to July 10, while the municipality executive had mentioned different dates for the floods and damages from July 21 to September 1. The claim of the contractor company was prima facie weakened by the contradictory letters of both these documents.
Authority’s decision:
The authority had ruled in favour of the insurer based on the fact that the incident was adverse to the terms of the contract without informing the insurer within 14 days as the letter dated November 20, 2019 mentioned that the river was flooded from July 27, 2019 to July 30, 2019, and the insured had informed the insurer about the incident only on December 30, 2019 after a long time.
Infamous Pappu Bullying Dhandah
Pappu Construction has been adopting the strategy of delaying the work, doing substandard work and resolving disputes after getting the mobilization money and getting the contract for the construction of very unrepaired bridges on national highways and postal roads in different parts of the country.
The district administration, roads department, commission for investigation of abuse of authority, public procurement monitoring office, national vigilance centre, world bank’s project office, district court, high court, supreme court and any other quasi-judicial bodies in the respective areas have been making the projects that they have been involved in or deprived of involvement in by filing complaints and cases.
The matter is still pending in the court after the Department of Roads took action against the company for serious negligence in the construction of the concrete bridge on the right-hand side of the Baneshwor Tinkune bridge in Kathmandu and the west side of the Teku bridge.
Pappu is on the blacklist:
The Government of Nepal has blacklisted Pappu Construction Pvt Ltd, which was involved in the Sikta Irrigation Project of Banke under the national pride project, since April 1, 2081. The Public Procurement Monitoring Office under the Office of the Prime Minister and Council of Ministers has blacklisted Pappu for two years and six months.
