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2025 (12) TMI 12

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....cating Authority has rejected Section 9 application filed by the appellant. Appellant has filed Section 9 application against the Hindustan Prefab Limited claiming debt and default. There was a contract between appellant-operational creditor and Hindustan Prefab Ltd. under which work was done by the appellant and after submission the bill payment was not made, Section 9 application was filed. Adjudicating Authority in the impugned order relying to Clause-28 of the special condition of contract held that as per the Cluse-28 the amount shall be payable to the contractor i.e; operational creditor only when payment is received from Principle, NDRF and the amount having not been received from the Principle, NDRF no default has been committed by ....

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.... The facts in each appeal are different and hence separate judgements are being passed in each of the appeals. The present guidelines are being issued in all the appeals. The Court has had the opportunity of perusing the trial court records in all these 43 appeals. A perusal of the records reveals the following :- 1. In most cases, the Contractors who are awarded the work orders do not submit the interim or final bills to the Engineer-in-Charge for approval; 2. The final measurement recordal is done by the Engineer-in-Charge; 3. The final bill is also prepared and passed by the Engineer-in-Charge on his own accord and the Contractor then accepts it; 4. The procedure for obtaining labour clearance....

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....passed, the payment schedule of 6 months and 9 months should be adhered to. Delay in payments would result in Interest being levied; 8. For refunds of Security deposit and Earnest Money deposit, the Contractor should unscrupulously comply with the conditions in Clauses 17 and 45. For refunds to be made, payment of final bill need not be awaited. Once the conditions of Clauses 17 and 45 are complied with and the final bill is passed, refunds ought to be made; 9. In suits relating to recovery of Contractor's dues, all the evidence including the NIT, General Conditions of Contract, periodic inspection reports, Final bill as submitted, Final bill as passed, Measurements carried out, Photographs etc., should be produced and....

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....-10 of the impugned order which is as follows:- "10. Clause 28 of the Special Conditions of Contract of Agreement dated 20.04.2016 stipulates that the Contractor stall be entitled to payment only after the Corporate Debtor receive the corresponding payments from the NDRF and no delay in release of payment will pass on any additional compensation/ interest to the Operational Creditor. Clause 28 of the Special Conditions of Contract is reproduced below: "28. It is clearly agreed and understood by the tenderers/ contractors that notwithstanding anything to the contrary that may be stated in the agreement between HPL & the contractor, the contractor shall become entitled to payment only after H.P.L. received the corresponding ....