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REKHA PALLI
North Delhi Municipal Corporation – Appellant
Versus
Deepak Kumar – Respondent
JUDGMENT
Rekha Palli, (Oral) J. - The present decision disposes of five regular first appeals assailing five judgments all dated 03.09.2019 passed by the learned ADJ, Tis Hazari Courts, Delhi in five different recovery suits filed by the respondent/plaintiff. Since the issues involved in all these appeals are identical, the same are being disposed of by this common judgment.
2. For the sake of convenience, the facts of the RFA 318/2021 are being referred to and the parties will, hereinafter be referred to as per their position before the learned Trial Court.
3. The present regular first appeal under Section 96 of the Code of Civil Procedure (hereinafter, CPC) seeks to assail the judgment and decree dated 03.09.2019 passed by the learned ADJ, Tis Hazari Courts, Delhi in CS No. 178/2017. Vide the impugned judgment, the learned Trial Court has decreed the suit of the respondent/plaintiff for a sum of Rs.3,54,848/- along with interest @ 6% per annum w.e.f. 26.01.2015.
4. The defendant no.2/The Executive Engineer (M-1), City Zone, NDMC invited tenders on behalf of defendant no.1/NDMC for the improvement of lane in Gali Imam Wali by pdg. RMC in ward no.79, City Zone and Improvement of Channe
The plaintiff was entitled to receive the payment for the work done and the defendants could not deny interest on delayed payments based on Clause 9 of the NIT.
The contractor is entitled to interest on delayed payments even when contract clauses suggest payment depends on fund availability; unreasonable delays cannot negate interest obligations.
The main legal point established in the judgment is that contractual clauses must be reasonable and not unconscionable, and contractors should be paid within a reasonable time as per Section 46 of th....
The judgment established the requirement for reasonable time for payment and the illegality of clauses that postpone consideration indefinitely.
Indefinite payment conditions in contracts are unreasonable and violate the principle of contractual consideration, requiring clarity and a specified timeline.
Payment terms in contracts must include reasonable timelines; indefinite delays render contractual clauses illegal and against public policy.
The main legal point established in the judgment is the entitlement to extra work payment and interest on delayed payments under the terms of the contract and the Interest Act, 1978.
The contractor is entitled to 6% interest on delayed payments as per previous court judgments regarding contractor compensation.
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