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DELHI HIGH COURT
REKHA PALLI
North Delhi Municipal Corporation – Appellant
Versus
Deepak Kumar – Respondent
| Table of Content |
|---|
| 1. overview of case appeals (Para 1 , 2 , 3) |
| 2. details of contract and completion of work (Para 4 , 5) |
| 3. defendant's arguments regarding payment delays (Para 6 , 9) |
| 4. trial court's rationale for awarding interest (Para 7 , 8 , 10 , 11) |
| 5. affirmation of trial court's decision on interest (Para 12 , 13) |
| 6. final judgment and dismissal of appeals (Para 14) |
JUDGMENT
Rekha Palli, J. (Oral)--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
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 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 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....
Indefinite payment conditions in contracts are unreasonable and violate the principle of contractual consideration, requiring clarity and a specified timeline.
The judgment established the requirement for reasonable time for payment and the illegality of clauses that postpone consideration indefinitely.
Payment terms in contracts must include reasonable timelines; indefinite delays render contractual clauses illegal and against public policy.
The contractor is entitled to 6% interest on delayed payments as per previous court judgments regarding contractor compensation.
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