Novostroy lost two court cases to Kirov Construction Enterprise.

      According to court documents, in May 2021 Kirov Construction Enterprise LLC concluded a general contractor agreement with Novostroy LLC for the construction of a building on Sovetsky Trakt in Kirov intended for the repair and servicing of vehicles, as well as a shop building. The cost of the work amounted to 26 million rubles. The contractor completed the work and received the payment. However, the client later identified a number of defects and, since an agreement could not be reached, went to court demanding that the contract price be reduced to 24.8 million rubles.

      On June 6 this year the Arbitration Court of the Kirov Region partially upheld the client's claim. The court concluded that the defects were confirmed by the case materials and that the contract price should be reduced by 1.5 million rubles, that is, to 25 million rubles. This amount, together with court costs of 135,000 rubles, was recovered from Novostroy.

      Novostroy disagreed with the decision and filed an appeal with the Second Arbitration Appellate Court. On August 25 the appellate court left the decision unchanged.