BK International to sue Surendra Engineering in India over Specialty Hospital works

Last Updated on Thursday, 4 September 2014, 20:36 by GxMedia

The Specialty Hospital’s construction site at Turkeyen

BK International Incorporated on Thursday announced that it would be moving to the courts in India in an effort to recoup outstanding money owed by Surendra Engineering Corporation Limited, the Indian company contracted to construct the US$18M Specialty Hospital at Turkeyen in Guyana.

BK International Incorporation said in a statement that its move to the courts in India comes after the Commercial Court here lifted an Interim Injunction restraining Brijen Parikh, Managing Director of Surendra Engineering Corporation Limited, from leaving Guyana without settling the debt to BK International. Prior to the decision to take legal action in India, BK International sought the intervention of the Indian High Commissioner to Guyana but saw no progress.

BK International, a sub-contractor, said it is owed GUY$180,100,242 for work done in the months of May, June and July, 2014. According to the company, three Invoices dated May 12, June 4, and July 1 were dispatched to Brijen Parikh, Managing Director of Surendra Engineering Corporation Limited 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 and Surendra Engineering Corporation Limited entered into a written agreement for BK International to supply and drive 2000 pieces of 65 feet long greenheart piles at Turkeyen, East Coast Demerara, said BK in its statement.

BK said the agreed sum for the execution of the contract by BK International is GUY$673, 978,328.  The company added that Surendra Engineering Corporation Limited agreed to pay BK International for quantities of work done and certified by the engineer on site. Payment was to be made within two weeks after submission of the invoices by the BK International. This was not done.

On July 21, 2014 BK International filed for and received an Interim Injunction against Surendra Engineering Corporation Limited. The injunction granted by Justice Rishi Persaud in the Commercial Court followed an Ex-parte Application by way of Affidavit by BK International Inc. The Interim Injunction restrained the defendant, Surendra Engineering Corporation Limited, 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 GUY$180,100,242 as security in the event that judgment is being obtained against the defendant by the plaintiff.

On July 23, 2014, Justice Rishi Persaud ruled that BK International recovers the sum of GUY$180,100,242 together with costs in the sum of GUY$450,000 after Surendra consented to judgement. Justice Persaud also ordered that there be a stay of execution for a period of two months and discharged the Interim Injunction granted by the said court on July 22, 2014. As a result of the order by Justice Singh, Brijen Parikh has left the jurisdiction without paying BK International.

While the court action relates to Valuations numbered 3, 4, & 5, BK International is exposed for over four hundred million dollars on the Specialty Hospital Project.

BK International is being represented by Mr. Robert Ramcharran and Surendra Engineering Corporation Limited is being represented by Mr. Vidyanand Persaud.