Contract, Advance Payment, Unperformed Work, and Recovery

• 2022-04-11

Under a subcontract agreement concluded between the companies, the Defendant was obligated to perform certain construction works. Based on the concluded agreement, the Plaintiff regularly made advance payments to the Defendant. However, the Defendant only performed part of the construction works corresponding to the transferred amount, while the completion of the remaining part of the works, which corresponded to the other portion of the payment, was not confirmed by written evidence, as the respective completion acts were not validated.
Before initiating the legal action for the protection of his rights, the Plaintiff requested the return of the amount through a claim, but the Defendant refused.
With the submitted lawsuit, the Plaintiff sought not only the recovery of the amount but also the calculation of the interest on the mentioned sum, as stipulated in Article 411 of the Civil Code of the Republic of Armenia, starting from the day the lawsuit was filed until the actual fulfillment of the obligation.
Upon examining the claim, the Court concluded that the Plaintiff’s arguments were justified and considered the lawsuit valid and subject to approval.

Note: The decision of the General Jurisdiction Court of Yerevan City in Civil Case No. ED/42054/02/19, dated February 19, 2019, has not been appealed and has entered into legal force.