Honesty Triumphs: High Court Upholds 6% Interest Payment to Contractor : Advocate Tausif Niyazi’s Powerful Advocacy Secures Historic Victory

Awes Siddiqui | Akola | Special Report

Amid rising concerns over contractor distress and suicides in Maharashtra, a landmark judgment from Akola has delivered a strong message in favor of justice and transparency. The case involved a payment dispute between the Akola City Municipal Corporation and local civil contractor Shoeb Abubakar Sorathia.

In 2016, the contractor completed cement road and drainage construction projects assigned by the municipal corporation. Despite proper completion, official measurement entries, and bill approvals, an outstanding amount of ?5,97,947 was withheld. He was also blacklisted and faced a police complaint over alleged irregularities in earlier works.

On May 2, 2022, the 4th Joint Civil Judge Senior Division, Akola ruled in favor of the contractor, stating that withholding payment without prior notice violated principles of natural justice. The court ordered payment of the full amount with 6% annual interest.

Subsequent appeals were dismissed, including a Second Appeal rejected in January 2026. Finally, the 3rd Joint Civil Judge Senior Division, Akola directed the release of ?8,15,424 (principal plus interest) via NEFT/ECS.

Advocate Tausif Niyazi emerged as the hero of this legal battle. Through meticulous documentation, strategic cross-examination, and compelling arguments, he demonstrated that a public authority cannot act arbitrarily. His advocacy not only secured justice for one contractor but also set a precedent protecting contractors’ rights across Maharashtra.

Why This Judgment Is Historic

Clear message: “Work completed must be paid.”

Judicial accountability for municipal authorities.

Financial penalty through 6% interest for delayed payment.

Strengthened confidence among contractors.