VTL did not make payment of twelve of the PSC invoices raised by it, thus, IBM claimed an amount of ₹8,47,27,529/- as VTL had committed breach of its obligation under the Agreement. Whereas, VTL contended that IBM had submitted invoices aggregating ₹47,25,67,340/- towards PSC and that it had paid ₹38,26,39,955/towards PSC to IBM with respect to the milestone achieved/Projects delivered, IBM was eligible only for a sum of ₹23,02,43,769/- towards PSC and, therefore, according to VTL, it had made an excess payment of ₹15,23,96,186/- towards PSC. VTL also contended that the Agreement provided for on-account payment on achieving four milestones and a final payment to be made on achieving the fifth and final milestone on the assumption that the project will be ultimately completed and be of use and utility to VTL. It contended that since IBM had merely commenced the Project and had left it unfinished, it was of no use to VTL, and IBM was not entitled to any payment with respect to achieving any of the milestones even if invoices had been raised and any payments had been made. VTL claimed that IBM had not fully operationalised majority of the project till 31.03.2011 and had not delivered approximately 67% of the Projects; IBM had submitted invoices only about 54% of the scoped project.
