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Delhi High Court raps civic authorities for delay in payment for civil works

Team SoOLEGAL 30 Mar 2018 3:43pm

Delhi High Court raps civic authorities for delay in payment for civil works

New Delhi : In an order given by a judge of the Delhi High Court, the judge said it is "unfathomable" how the contractor can be open to executing civil work without any promise of payment. The observations were made by the court on a batch of appeals made by the North and East Delhi Municipal Corporations against a trial court decision allowing the contractors’ suits for recovery of their money spent on the works, the security deposit and interest on the amount for delay in payment.

It upheld the trial court decision and also laid down guidelines to be followed by civic bodies for carrying out and making payments to contractors thereof.

It also said it is violation of contract if the Municipal corporation does not have the money to pay for the tender it issues and work order it gives to contractor post the tender.

“To ask the contractor to wait endlessly for his payment is wholly arbitrary. The corporation which hands over the works contract to the contractor cannot say ‘do the work now, I will pay when I have the money’,” justice Pratibha M. Singh said, adding that the tenders or work orders must be issued on the pre-condition that funds are available.

“It is unfathomable as to how the corporation can postpone the payment to the contractor indefinitely,” the court said, adding that the “delay in payments compromises on availability of quality civil work for the corporations, who take care of the basic amenities for citizens such as roads, pavements, civil works, sewerage lines etc.”

The court also laid down guidelines to be followed by the civic bodies and the contractors to ensure that the works are carried out as per the quality standards and there is no delay in making the payments.The guidelines lines include maintaining digital record, visit of the site by the concerned engineer and timely release of the earnest money.



Tagged: Delhi High Court   MCD   Contractors  
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