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Anonymous
in Criminal Law Labour Law
Asked July 13, 2017

Company delaying payment and saying fund problem as reason

  • 2 Answers
  • 143 Views

We did floor painting job in a factory in Bhiwadi having corporate office in Gurugram. We received PO from corporate address. We worked for Rs. 525000.00 of which 293000.00 are pending and yet to receive. We got multiple order which has been completed by August 2016. Now company is delaying the payment and saying, they have fund problems. Now you suggest, what we should do?

Answers 2

Sir, this is a grave default of your contractual terms. As you have been always willing and

able to perform your part of the contract, the company is bound to comply by its terms. You

being the party aggrieved must institute a suit under section 37 of the Specific Relief Act

1963 and plead for the court to grant you a perpetual injunction through which the court

orders the defendant (company) to comply by its terms of contract. However, the penalty

attracted is derived from Section 73 of the Indian Contract Act. This law grants compensation

to the victim party from the party committing default of contract in lieu of the loss suffered

by the former because of breach of contractual terms. Please go through your contract to

figure out if there was any time limit and specific clause relating to payment of dues.

Agree Comment 0 Agrees over 3 years ago

Sir, this is a grave default of your contractual terms. As you have been always willing and

able to perform your part of the contract, the company is bound to comply by its terms. You

being the party aggrieved must institute a suit under section 37 of the Specific Relief Act

1963 and plead for the court to grant you a perpetual injunction through which the court

orders the defendant (company) to comply by its terms of contract. However, the penalty

attracted is derived from Section 73 of the Indian Contract Act. This law grants compensation

to the victim party from the party committing default of contract in lieu of the loss suffered

by the former because of breach of contractual terms. Please go through your contract to

figure out if there was any time limit and specific clause relating to payment of dues.

Agree Comment 0 Agrees over 3 years ago

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