The court dismissed the defendant's plea regarding fund availability and decreed the suit for recovery of unpaid bills and security. It directed payment of the principal amount with interest calculated at 8% and 6% p.a.
Decree of the suit for recovery of principal amount with interest at 8% on bills and 6% on security.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
$~31
SANJEEV KUMAR GOEL …..Plaintiff Through: Mr. Avinash Trivedi, Ms. Ritika Trivedi, Mr. Jatin Arora and Mr. Rhythem Nagpal, Advocates.
versus
MUNICIPAL CORPORATION OF DELHI …Defendant Through: Mr. Prabhat Kumar and Mr. Sahin Awana, Advocates.
CORAM: HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA
J U D G M E N T (oral)
I.A. 8706/2024 (under XIII-A read with Order XII Rule 6 CPC)
Submissions heard and the record perused.
CS(COMM) 850/2023 Page 1 of 4
Signature Not Verified Digitally Signed By:VIKAS ARORA Signing Da te:2 9.04.2024 19:26:06
enrolled as Municipal Contractor with defendant/MCD. The plaintiff was awarded the work of “Improvement and strengthening of 13.50 m wide road in Sector-22 Rohini in Narela Zone” vide work order No.EE-Project Narela/SYS/2018-19/5 dated 13.04.2018. Pursuant thereto, an Agreement was executed between the parties. The date of start of work was 13.04.2018 and the date of completion was 12.10.2018, in terms of the Agreement. The plaintiff successfully completed the work within time and the bills were submitted to the defendant for payment. The Defect Liability Period/Maintenance Period was five years, which also stands completed on 12.10.2023. The payment against the 2nd RA bill, 3rd RA bill, 4th and Final Bill and 10CA Bill, have been retained by the defendant. It is further submitted that the Liability Period has expired on 12.10.2023 and therefore, the plaintiff is also entitled to the Security amount of Rs.42,12,311/-, which has also been retained in the 4th and final bill.
Signature Not Verified
CS(COMM) 850/2023 Page 2 of 4
Digitally Signed By:VIKAS ARORA Signing Da te:2 9.04.2024 19:26:06
further submitted that the defendant would make the total payment to the plaintiff as and when the funds are available with the defendant.
Signature Not Verified
CS(COMM) 850/2023 Page 3 of 4
Digitally Signed By:VIKAS ARORA Signing Da te:2 9.04.2024 19:26:06
be made within six to nine months as the case may be and the interest is not leviable for this period in case the non-payment is on account of paucity of funds. The Clauses 7, 9 and 9A of the GCC nowhere provide that no interest whatsoever shall be payable in case of paucity of funds with the defendants. It was thus concluded that if the payments are made whether on a queue basis or otherwise beyond a period of six months and nine months respectively, interest shall be payable on the due amount.
(NEENA BANSAL KRISHNA) JUDGE
APRIL 22, 2024/RS
Signature Not Verified
CS(COMM) 850/2023 Page 4 of 4
Digitally Signed By:VIKAS ARORA Signing Da te:2 9.04.2024 19:26:06
2 issues framed by the court
Whether the plaintiff is entitled to recovery of unpaid bills and security amount after the expiry of the defect liability period.
Whether interest is payable on delayed payments despite contract clauses conditioning liability on fund availability.
Colour shows how this judgement treated each authority
North Delhi Municipal Corporation & Ors. vs. Shish PalRelied on¶28
North Delhi Municipal Corporation & Ors. vs. Shish Pal, MANU/DE/1200/2018
Neena Bansal Krishna
As recorded by the court registry
A suit of a commercial nature above the specified value, governed by the Commercial Courts Act 2015.
Judgements on the same questions, provisions and authorities, from every court
