Construction of a house

Querist : Anonymous (Querist) 21 September 2011 This query is : Resolved
Dear sir,
I am an Govt. officer. In May 2009 I thought of constructing my house. For the purpose I got in contact with a person somehow known to me in the bussiness. He came to me and we finalised the specifications, rate and the time for completion i.e. one year (hand written by me as he is virtually illitrate). A copy of said paper was taken by him to get it typed in Hindi to form an agreement. As I was residing too far about 150 Kms in hilly terrain therefore I engaged him for construction with material. The work was started by him in May’2009 itself. After few months I asked him for the specifications, he told that I will get it ready soon. Again he said I lost the paper therefore I framed the specications already discussed and handed over to him in English. He again wanted to translate it in Hindi and took it. The progress of the work was too slow. I kept reminding him for the time but my reminder couldn’t do much. The structure of the house was completed more or less satisfactorily except one or two occasions. I also kept reming him for the agreement, again same reply was there. I used to pay him as & when required. I used to come to the look after the site on Sundays.
In Sept’10, (full structure and few finishing items like plastering, PoP, railing etc were completed by that time) he stopped the work stating that he is in loss (may be because of delay on his end) and he couldn’t continue further. I discussed in detail and after adding few more richer specifications of the Item of works still to be executed, I enhanced the rate by 150/Sqft. Again he wanted to get it typed in Hindi. After one or two days he came with the item of works typed alongwith the new rate on a 100.00 stamp paper, which we both signed in presence of a witness each. There was a clause in said document that any extra work will be paid extra.
After long wait we managed to enter into our house in May (last) 2011 (after two years). For our surprise we found that there was seepage on many walls of the bathrooms. The reason was the leakage from the pipeline (poor workmanship of the plumber), which was removed after my persuation once he couldn’t install an European WC properly. The slopes of flooring were not proper and were not laid in proper manner, polising, distempering and PoP is very unskillfully finished. We were force to do the distempering of the drawing room again on our own expenditure. He dismantled the walls on some locations and got the pipeline repaired. The distempering is still to be done properly on said walls. The remedial works continued for about two months after our entry. While the works were in final stage the carpenter left the work because of said contractor and was not ready to work. The contractor was not able to talk and takle him. So I persuaded him, on which he got ready to work if I pay him on daily basis (Said proposal was again submitted by said contractor to me that he will pay but I have to say). I paid about 20,000.00 to the carpenter too. (which the contractor refused to abide at the end)
On his continuing requests for finalisation of the accounts, we sat for the final settlement, which they left after discussion of few points. After two days we again sat and after considering all his extra work done finally it was concluded that an overpayment of about 1,75,000.00 is towards him. On which he got very upset and went away saing that he doesn’t accept this calculation. Again after about a week he came asking what to do. I told him that it is not final and we can sit again if there is any discrepancy It shall be removed and whatever the outcome will be there I will pay him. I never asked to return the money already over paid to him.

There was no contact for about one month, suddenly on 19.09.2011 I received a Regd. letter, which was the notice from an advocate of said contractor stating that he met me on 17.09.2011 for payment and I refused him to pay and abused him (it is a fake story, there was no contcat since one month) It has been conveyed in the notice that still I have to pay an amount of 3,64,000.00.
The advocate has given me notice for payment withing 15 days.
As the limit of the rate provided in the agreement already exhausted, the extra material (door fittings, PVC pipes, pipe fittings, electrical wire and fittings) worth about 15000.00, purchased using my money are still in his possesion other than the tullu pump provided by me. Probably said items were purchased in excess to syphon somewhere (other sites) or to get back the money from the suppliers.
I want to know:
1. What is the status of said stamp paper signed between two parties in the court of law?
2. What should I do to the notice of the advocate?
3. Should I file a FIR for getting the material in his possesion (may be theft)?

I want to avoid any legal wrangle but I also don’t want to pay further. Kindly help me.

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ajay sethi (Expert) 21 September 2011
1)you have to reply to the legal notice .

2)in reply to legal notice you mention that as per agreement entered into the contractor has failed to complete work on time . the work was not done as per specifications . on account of faulty work manship you had to hire services of plumber to rectify leakages and engage another carpenter
3) you state that ameeting was held for provisional settlement of accounts it was found that over payment of rs 1,75,000 was made but the contractor has failed to refund the same . you also make a claim for damages .

4)the stamp paper is valid and mentions the scope of work to be done . you cna submit the document for adjudication and get it properly stampped if you so desire .
5)as far as materials in his posessiona re concerned in your reply to legal notice you call upon him to return the balance materials and refund excess payment made .