A contractor has moved a Commercial Court here seeking its intervention for an interim relief to restrain the Kashmir Chamber of Commerce and Industry (KCCI) from alleged diversion of funds earmarked for the construction of its Chamber House despite an ongoing recovery suit involving purported unpaid dues.
In an application filed before the Court of the 9th Additional District Judge (Commercial Court) Srinagar, the plaintiff, M/s Net Surfer through its proprietor Wasim Rifat Mir, submits that it had earlier filed a recovery suit seeking payment of outstanding construction bills, interest, damages and costs amounting to nearly Rs 1.90 crore.
The applicant claims that KCCI owes an admitted liability of Rs 56.89 lakh and that additional verified bills have increased the admitted outstanding amount to Rs 76.50 lakh.
According to the plea, minutes of KCCI Executive Committee meetings allegedly reveal financial stress within the organisation and a decision to suspend the House Construction Fund from April 1, 2026, for one year. The contractor alleges that contributions collected specifically for the Chamber House are proposed to be credited to KCCI’s main operational account to meet administrative and operational expenses.
His further contention is that such diversion of funds would defeat the purpose for which members and donors contributed and could jeopardise recovery of the outstanding dues if the suit is eventually decreed in its favour.
Moreover, the plea underscores that KCCI’s financial records indicate heavy expenditure under several heads and that funds originally collected for the Chamber House are at risk of being utilised for purposes unrelated to the construction project.
Seeking urgent intervention, the contractor has urged the court to restrain KCCI from implementing the resolution permitting diversion of construction funds, attach the bank account containing the Chamber House Construction Fund under the relevant provisions of the Code of Civil Procedure, and appoint a receiver to safeguard the funds until disposal of the suit.
He also contends that the alleged diversion could be carried out electronically at any time, warranting immediate ex-parte interim protection.
The matter could not be taken up for consideration today and is likely to come up for hearing next month.
