The Attorney General Chambers has instituted legal proceedings against S. Maraj Contracting Services for failure to meet contractual obligations in relation to the $413M rehabilitation of the Leguan Stelling project.
The contract was terminated in February following a special audit which had found that the company is “incapable, unable, and does not posses the wherewithal” to successfully execute the project.
The contract was awarded in September 2018 and it was expected to be completed in June 2019.
See full Statement of Claim filed:
Mr. Mohabir Anil Nandlall SC, MP
Attorney General of Guyana and
Mr. Nigel Ovid Hawke, Solicitor General
Attorneys-at-Law for the Claimant
Firm’s name: Attorney General’s Chambers
Address: 95 Carmichael Street,
North Cummingsburg, Georgetown
Tel. No.: 225-3607
Email: [email protected]
IN THE HIGH COURT OF THE SUPREME COURT OF JUDICATURE OF GUYANA
CIVIL JURISDICTION
2021 – HC – DEM – CIV – SOC –
BETWEEN:
THE ATTORNEY GENERAL OF GUYANA
Claimant
– and –
1. S. MARAJ CONTRACTING SERVICES
2. ASSURIA GENERAL (GY) INC, a company duly incorporated under the Companies Act, Laws of Guyana situate at Lot 78 Church Street, South Cummingsburg, Georgetown Guyana.
Defendants
INFORMATION FOR COURT USE
1. This proceeding is commenced as a:
[ x] Statement of Claim
[] Fixed Date Application
2. This proceeding falls under the High Court’s
[ ] Appellate Jurisdiction
[ ] Admiralty Jurisdiction
[ ] Commercial Jurisdiction
[ ] Criminal Jurisdiction
[ ] Family Jurisdiction
[x] Regular Jurisdiction
(must check one of these boxes and, except where proceeding is under the regular jurisdiction of the Court, must specify the applicable jurisdiction in the General Heading (Form 4A).
3. The proceeding is an
[ ] Admiralty Proceeding in personam
[ ] Admiralty Proceeding in rem
[ ] Probate Proceeding
[ ] Proceeding Judicial Review
[ ] Proceeding relief under constitution
[ ] Proceeding for Administrative Law
[ ] Proceeding for Administration
[x ] Other Proceeding
(must check one of these boxes and, except where the proceeding relates to the last option so on the General Heading (Form 4A).
4. I certify that the above information is correct, to the best of my knowledge.
Dated this March, 2021.
________________________________
Mr. Mohabir Anil Nandlall SC, MP
Attorney General and Minister of
Legal Affairs
Attorney- at- law for the Claimant.
Mr. Mohabir Anil Nandlall SC, MP
Attorney General of Guyana and
Mr. Nigel Ovid Hawke, Solicitor General
Attorneys-at-Law for the Claimant
Firm’s name: Attorney General’s Chambers
Address: 95 Carmichael Street,
North Cummingsburg, Georgetown
Tel. No.: 225-3607
Email: [email protected]
IN THE HIGH COURT OF THE SUPREME COURT OF JUDICATURE OF GUYANA
CIVIL JURISDICTION
2021 – HC – DEM – CIV – SOC –
BETWEEN:
THE ATTORNEY GENERAL OF GUYANA
Claimant
– and –
3. S. MARAJ CONTRACTING SERVICES
4. ASSURIA GENERAL (GY) INC, a company duly incorporated under the Companies Act, Laws of Guyana situate at Lot 78 Church Street, South Cummingsburg, Georgetown Guyana.
Defendants
STATEMENT OF CLAIM
TO THE DEFENDANTS
A LEGAL PROCEEDING HAS BEEN COMMENCED AGAINST YOU by the Claimant. The claim made against you is set out in the following pages.
IF YOU WISH TO DEFEND THIS PROCEEDING, you or an Attorney-at-Law acting for you must prepare a Defence in Form 10A prescribed by the Civil Procedure Rules 2016, serve it on the Claimant, and file it, with proof of service at a Registry, WITHIN TWENTY-EIGHT DAYS after this Statement of Claim is served on you.
IF YOU FAIL TO DEFEND THIS PROCEEDING, JUDGMENT MAY BE GIVEN AGAINST YOU IN YOUR ABSENCE AND WITHOUT FURTHER NOTICE TO YOU. IF YOU WISH TO DEFEND THIS PROCEEDING BUT ARE UNABLE TO PAY LEGAL FEES, LEGAL AID MAY BE AVAILABLE TO YOU BY CONTACTING A LOCAL LEGAL AID OFFICE.
THIS STATEMENT OF CLAIM has no validity if it is not served within six months of the date below unless it is accompanied by an order extending that time.
Date_______________________ ________________________
Signature of Registry
Issued by:
Address of Registry where issued:
Supreme Court Registry,
South Road Georgetown, Demerara.
TO: S. MARAJ CONTRACTING SERVICES, Lot 25 Success Leguan, Essequibo Island, Region No. 3 Guyana.
TO: ASSURIA GENERAL (GY) INC, a company duly incorporated under the Companies Act, Laws of Guyana with its registered office situate at Lot 78 Church Street, South Cummingsburg, Georgetown Guyana.
CLAIM
A. The Claimant claims from the Defendant, the following:-
(i) General damages in excess of one hundred million dollars ($100,000,000.00) against the First named Defendant for breach of the Contract dated 18th September, 2018 for the Rehabilitation of the Leguan Ferry Stelling, Essequibo Islands, Region # three (3) Guyana;
(ii) The sum of 41,325,926.00 (forty one million, three hundred and twenty five thousand, nine hundred and twenty six) Guyana dollars as liquidated damages from the First named Defendant pursuant to the provisions of Contract dated Contract dated 18th September, 2018;
(iii) The sum of $ 41,325,926.00 ( forty one million, three hundred and twenty five thousand, nine hundred and twenty six) Guyana dollars as the sum due, owing and payable by the First named Defendant under Performance Bond issued by the Second named Defendant for Agreement dated 18th September, 2018 for the Rehabilitation of the Leguan Ferry Stelling, Essequibo Islands, Region # three (3) Guyana;
(iv) The sum of $ 81,398,375 .00 ( eighty one million, three hundred and ninety eight thousand, three hundred and seventy five ) Guyana dollars as the sum due, owing and payable by the First named Defendant under the Mobilization Bond issued by the Second named Defendant for Agreement dated 18th September, 2018 for the Rehabilitation of the Leguan Ferry Stelling, Essequibo Islands, Region # three (3) Guyana;
(v) An Order for Restitution from the First named Defendant in the sum of $ 81,398,375 .00 ( eighty one million, three hundred and ninety eight thousand, three hundred and seventy five ) Guyana;
(vi) Aggravated damages in the sum of one hundred million dollars ($100,000,000) for the First named Defendant’s breach of the Agreement dated 18th September, 2018 for the Rehabilitation of the Leguan Ferry Stelling, Essequibo Islands, Region # three (3) Guyana;
(vii) Alternatively, an Order of Restitution against the Second named Defendant for all monies owing on the Advance Guarantee and Performance Bond to the Government of Guyana;
(viii) Interest in accordance with Section 12 of the Law Reform Miscellaneous Act, Chapter 6:02, Laws of Guyana
(ix) Such further or other Orders as the Court deems just and reasonable;
(x) Costs.
B. The facts relied upon are as follows:-
1. The Claimant is and was at all material times the Legal representative of the Government of Guyana pursuant to section 112 of the Constitution of Guyana and statutory representative of the State in all civil proceedings by or against the State.
2. The First Named Defendant is and was at all material times a business registered and under Business Names Act , Laws of Guyana with its registered office situate Lot 25 Success Leguan, Essequibo Island, Region No. 3 Guyana.
3. The First Named Defendant is a registered Business with one of its primary business being Civil, Industrial and Construction Engineering with the jurisdiction of Guyana.
4. The Second Named Defendant is and was at all material times a company duly registered and existing under the Companies Act , Laws of Guyana with its registered office situate at Lot 78 Church Street, South Cummingsburg, Georgetown Guyana.
5. The Second Named Defendant is a limited liability company with its primary business as general insurance, fire and life Insurance with the jurisdiction of Guyana and with whom the First Named Defendant executed a performance bond and Mobilization bond for the Rehabilitation of the Leguan Ferry Stelling, Essequibo Islands, Region # three (3) Guyana.
6. The Government of Guyana through the Transport and Harbours Department (T&HD) executed a written agreement the First named Defendant on the 20th September, 2018 for the rehabilitation of the Leguan Ferry Stelling, T &HD. The contract was executed for the sum of $413,259, 260.00 ( four hundred and thirteen million, two hundred and fifty nine thousand, two hundred and sixty ) Guyana dollars and was supposed to be completed on or before 18th June,2019.
7. The First named Defendant submitted an agreed schedule of works to the project Consultant but failed execute the works in accordance with the agreed works schedule and has caused the project to be inordinately delayed.
8. The Rehabilitation of the Leguan Ferry Stelling was supervised at all material times by the project consultant Quintech Engineering Services.
9. The First Named Defendant would have submitted a work progamme to the project consultant with the schedule works for the duration and completion of the Rehabilitation of the Leguan Ferry Stelling.
10. As a consequence of the failure of the First Named Defendant to comply with programme of works submitted to the project manager, an assessment was done by the project consultant, Quintech Engineering Services and it was discovered that the First Named Defendant had only completed minimal works relating to the the Rehabilitation of the Leguan Ferry Stelling and works have been delayed approximately two (2) years.
11. As a consequence, the Government of Guyana caused the contract to be terminated on the 22nd February, 2021 on grounds of failure to comply with the schedule of works and the inordinate delay in carry out works on the part of the First Named Defendant which amounted to fundamental breach of the Agreement.
12. The termination letter was as follows:
22nd February, 2021
Mr. Sattrohan Maraj
S.Maraj Contracting Services
Lot 25 Success,
Leguan, Essequibo
Guyana.
Dear Sir,
Re: Termination of Contract for the Rehabilitation of Leguan Ferry
Stelling- Transport and Harbours Department( T& HD)
I act on behalf of the Government of Guyana.
The Government of Guyana through the Transport and Harbours Department (T&HD) executed a written agreement with your company on the 20th September, 2018 for the rehabilitation of the Leguan Ferry Stelling, T &HD in accordance with the terms specified in the said contract.
The contract was executed for the sum of $413,259, 260.00 ( four hundred and thirteen million, two hundred and fifty nine thousand, two hundred and sixty ) Guyana dollars and was supposed to be completed on or before 18th June,2019.
The T&HD has granted several extensions of the contract and notwithstanding those extensions, the project has been delayed for approximately twenty (20) months.
Thus far, your company has only completed a minimal amount of the schedule of works. As a consequence, your company has committed a fundamental breach of the terms of the contract and as a result thereof the Government of Government hereby exercises its right to terminate the contract with immediate effect.
The grounds for termination are as follows:
(a) Breach of Clause 40.2 (a) for failing to comply with the schedule of works;
(b) Breach of Clause 40.2 (g) read along with the special conditions of the contract for inordinate delay in the completion of works under the contract.
The Government of Guyana will enforce provisions of the contract regarding the following:
(a) The Performance Bond of $43,325,926.00;
(b) The mobilization Bond of $ 81,398,375.00;
(c) The ten (10%) of the contract sum as liquidated damages; and
(d) The value of the works not performed.
In addition thereto, the Government of Guyana reserves its right institute legal proceedings against your company for compensation for breach of contract and unjust enrichment.
Please arrange to have the site cleared immediately.
Please be guided accordingly
Yours Faithfully
…………………………..
Mr. Mohabir Anil Nandlall, MP, SC
Attorney General and Minister of Legal Affairs
13. The grounds for termination are as follows :Breach of Clause 40.2 (a) for failing to comply with the schedule of works and Breach of Clause
