Owner's responsibility for payment to sub contractor
Sanjay A
(Querist) 11 September 2014
This query is : Resolved
Dear Sir,
We are subcontractor who have executed part of project on behalf of turnkey contractor. The main contractor is in dire financial condition due accrued losses of earlier executed projects. They are in process of declaring themselves as Insolvent. There payments from the owner for which we have executed, are being taken entirely by their Banker.
Currenly our employer is due for last installment of payment from the owner.
Require guidance for how we can legally intervene and get our outstanding dues paid.
Regards,
Sanjay A
9049 474747
Kumar Doab
(Expert) 11 September 2014
Approach Official Liquidator and stake your claim.
Rajendra K Goyal
(Expert) 11 September 2014
You should claim from the contractor an not from the owner as you had no direct work agreement with them.
ajay sethi
(Expert) 11 September 2014
if contractor files insolvency petition and is declared an insolvent by court you will have to lodge claim with official assignee
Sanjay A
(Querist) 11 September 2014
The contractor is in liquidation process. There are already huge liabilities, which far exceed assests and recievable amounts. Our current outstanding is very huge than our sustaining capacity. Close down by Contractor and tenure for legal recovery process will virtually wipe our existence. Can we create any legal provision by merit of which Principal Employer stops payment to Contractor, untill a No due or NOC is obtained from our end.
Kumar Doab
(Expert) 11 September 2014
Approach a local lawyer well versed with such/company law matters with all docs on record and pursue this option, too.................... AS AP.
Apply all resources to find all undisclosed assets of the contractor and then do everything that is possible in a legitimate manner.to extract that is possible.
Sanjay A
(Querist) 12 September 2014
Query open
T. Kalaiselvan, Advocate
(Expert) 19 September 2014
This query will remain open if you do not follow the advise rendered by expert Mr.Kumar Doab.
Sanjay A
(Querist) 20 September 2014
Update, got a show cause notice to both Main Contractor & Owner. Prayer to Court, to stop Owner from making payment to our Employer i.e. Main Contractor
