2022 (1) TMI 711
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....y the Applicant seeking an order to direct Respondent No. 2 to release the retention money as per the Contract Agreement. 2. The following are the facts of the case briefly: a) The Respondent No. 2/Corporate Debtor Company is engaged in the business of construction contract execution of various Roads and Irrigation projects of National High Way Authority of India & Madhya Pradesh Road Development Corporate (MPRD) under design, Built, Finance, Operate and Transfer (DBFOT) basis and has taken up work under EPC contract from several State and Central Government Agencies. b) The Applicant entered into contract agreement with Respondent No. 2/Corporate Debtor Company and undertook certain works (Construction of road(s) National Highway) at ....
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....work contracts the terms are drawn up that the entire invoice will be honoured by the government agencies i.e., the entire invoice amount will be paid to the Contractor, if the main contractor furnishes a "Performance Bank Guarantee" to the tune of the 6% which is agreed upon as retention money by the parties. e) The Respondent No. 2 retains certain amounts from the bills invoices of the Applicant to ensure that the subcontractor makes good of the defect if any, during the Defect Liability period, in short this is a back to back arrangement. f) The Chhattisgarh, PWD Department has released the retention money held by them to Respondent No. 2. Hence the applicant requested Respondent No. 2 for the release of balance retention money of Rs....
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....collectively referred to as Amended Agreement") provides as follows: "In addition to the deduction mentioned under clause 7 above, PWD, Raipur shall retain 6% of the Gross value of monthly bill and this will be released within 15 days of the receipt of the retention money by Main Contractor from the Authorities. On completion of the whole works half the total amount retained is to be repaid to the Sub-Contractor and the remaining half shall be payable to him when the defect liability period has passed and the Engineer has certified that all defects notified by him to the Sub-Contractor before the end of the Defects Liability period have been corrected." As per clause 4(c) of the Amended Agreement, the Defects Liability period is of 36 mo....