Payment To Contractors Shouldn't Be Delayed For Non-Availability Of Funds Once Work Is Done: Delhi HC to Civic bodies; Issues Guidelines [Read Judgment]
6 years, 11 months ago

Payment To Contractors Shouldn't Be Delayed For Non-Availability Of Funds Once Work Is Done: Delhi HC to Civic bodies; Issues Guidelines [Read Judgment]

Live Law  

The Delhi High Court, on Thursday, laid down guidelines for adherence by Contractors as well as authorities while making payments to such Contractors, noting that they are made to wait endlessly for their payments on the ground of non-availability of funds.Adherence to these guidelines, Justice Pratibha M. Singh observed, "shall ensure that the works are duly carried out as per the. The Delhi High Court, on Thursday, laid down guidelines for adherence by Contractors as well as authorities while making payments to such Contractors, noting that they are made to wait endlessly for their payments on the ground of non-availability of funds. Adherence to these guidelines, Justice Pratibha M. Singh observed, "shall ensure that the works are duly carried out as per the quality standards prescribed and there is proper record of work being done." The Court further referred to various provisions of the Indian Contract Act to assert that such an open-ended clause without any time limit for payment would be unreasonable and unfair, explaining, "The Corporation being an instrumentality of State, such a contract would also be opposed to public policy under Section 23 of the Contract Act.

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History of this topic

Mere Delay By Employer Would Not Entitle The Contractor To Damages Unless The Loss Is Pleaded And Proved: Delhi High Court
11 months, 3 weeks ago

Mere Delay By Employer Would Not Entitle The Contractor To Damages Unless The Loss Is Pleaded And Proved: Delhi High Court

Live Law  

The High Court of Delhi has held that merely because the delay in the execution of the work is attributable to the employer, the same would not entitle the contractor to claim damages unless it pleads and proves that such delay resulted in loss to it. The bench of Justices Vibhu Bakhru and Tara Vitasta Ganju held that a procedural …

Prolongation Compensation Can't Be Granted If The Contractor Didn't Reserve Claim For Compensation At The Time Of The EOT: Delhi High Court
1 year, 5 months ago

Prolongation Compensation Can't Be Granted If The Contractor Didn't Reserve Claim For Compensation At The Time Of The EOT: Delhi High Court

Live Law  

The Delhi High Court has held that no compensation can be awarded for the prolongation of the contract if the contractor did not reserve its right to such compensation at the time of the seeking Extension of Time. They ruled that the Tribunal's decision, which denied the prolongation cost due to the Contractor's failure to reserve this right during the …

Delhi south civic body contractors’ union on strike due to unpaid dues
3 years, 3 months ago

Delhi south civic body contractors’ union on strike due to unpaid dues

Hindustan Times  

The South Delhi Municipal Corporation contractors’ union began a protest on Friday at the Civic Centre on Minto Road claiming that it has been not paid around ₹450 crore for the last three years. In a memorandum submitted to the SDMC municipal commissioner last month, the All SDMC Contractor Association stated that they have stopped all engineering works until they …

"No Valid Ground For Not Complying To Court's Order": Delhi High Court Directs NDMC To Pay Wages To Workmen Within 4 Weeks
3 years, 9 months ago

"No Valid Ground For Not Complying To Court's Order": Delhi High Court Directs NDMC To Pay Wages To Workmen Within 4 Weeks

Live Law  

The Delhi High Court on Monday directed the North Delhi Municipal Corporation to provide monthly wages to the workmen in compliance of its earlier order dated 29 January this year.A single judge bench comprising of Justice Pratibha Singh observed thus:"This Court is of the opinion that there is no valid ground for the Petitioner for not complying with the order …

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