Onur Construction International did not appeal UAH 3.1 million collected in favor of UGV

The JSC UkrGasVydobuvannya (UGV) appealed to the Commercial Court of Kyiv with a claim to the Onur Construction International LLC to recover UAH 3.1 million as a fine under the contract dated November 15, 2018. The amount of the claimed fine consists of UAH 24 000 and a fine of UAH 13 000 for violation of the term of design and survey works, UAH 1.4 million as a penaty and UAH 1.65 million as a fine for violation of the term of bespoke construction works.

By the decision of the Commercial Court of the city of Kyiv of January 14, 2021, the UGV’s claim was satisfied in full. The local commercial court upheld UGV's claim for a penalty and a fine under the contract, noting that the Onur Construction International LLC had reported force majeure with the expiration of the contract, and the company's arguments about the existence of force majeure them in the terms of work provided by the contract were found as groundless.

Disagreeing with the decision, the Onur Construction International LLC filed an appeal with the Pivnichniy Commercial Court of Appeal, requesting that the Commercial Court's decision be overturned, and a new decision be be issued to deny the UGV’s penalty. According to the case file, the UGV and the Onur Construction International LLC have entered into a contract under which the latter to render construction works at the UGV’s well sites and to build access roads to them. To fulfill the terms of the contract on December 26, 2018, the contractor received an order dated December 13, 2018 from the UGV for the construction of the access road and the site for Well № 61 Bayrak. Given the contractor finalized the design and survey work on May 15, 2019, it delayed the construction works for 131 days.

In the circumstances, in the opinion of the panel of judges, the conclusion of the local court on the existence of legal grounds for satisfaction of the UGV’s claims corresponded to current legislation, and the contractor’s arguments in did overweighed it. Thus, the appellate court dismissed the appeal.

Onur Construction International LLC - is a turkish construction company with major accomplishments at undertaking of motorway, airport, dam construction and infrastructure projects.

12:24 / 8 October 2021

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