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Court orders Pakistan to pay $1.6 million for high commission building in Canberra

The argument that the local laws were not applicable to the high commission was rejected earlier this month.

Pak high comm

The Pakistan high commission in Canberra. Source: Fairfax Media

The ACT Supreme Court has ordered the Pakistan government to pay $1.6 million to Denham Constructions, that built the Pakistan high commission building in the Australian capital, Fairfax Media reported.

The construction company took the Pakistan government to the court last year when the company claimed the Islamic republic owed it $1 million for building its new high commission complex.

Denham said it was owed for cost overruns and building delays.

The Pakistan government said the local laws did not apply because the commission was on "National Land" - land controlled by the Commonwealth. The court ultimately rejected these arguments.

But, just before the court hearing on Wednesday, the construction company went into administration.

Earlier this month, Associate Justice David Mossop rejected each of the Pakistan government's arguments for why it did not have to pay the builder.

He has ordered the government of Pakistan to pay Denham more than $1.6 million, which included the money owed plus interest.

But Mr Mossop gave the parties one week’s time to talk to the administrator of the company, until then Denham can’t force the payment.

The parties will return to court later to argue over costs.


2 min read

Published

By Shamsher Kainth

Source: Fairfax Media



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