Notice to government contractee
minsal
(Querist) 24 March 2015
This query is : Resolved
Dear Experts,
One firm has applied for and obtained a tender of government contract regarding some civil work. the said contractor firm then executed a MOU with other firm and issued SUB-CONTRACT to the other firm for completing the civil work.
The said sub-contractor co. has started the civil work and from time to time raised the bill to the contractee and collected the payment in the name of contractor firm. as agreed the said contractor firm paid certain amount to the sub-contractor firm but later they neglected to make the payment to the sub-contractor. the sub-contractor firm they stopped the civil construction work and dispute arose between the parties.
The said contractor firm then approached the Sub-contractor firm with a settlement proposal. According to the said proposal the contractor agreed to pay the amount to the sub-contractor for the machinery and setup they developed for the said civil work and for the work they have done. it was mutually agreed that the contractor will pay the entire amount vied eight installments and the contractor themselves will continue and complete the remaining construction work under the said government contract.
The contractor then issued one cheque to the sub contractor towards the payment of first installment but the said cheque was return with remark "Account Closed".
Under the circumstances can the sub contractor issue the notice to the contractee (the Government Department)for the payment of their work? can the sub contractor request the contractee to stop the payment of the contractor and pay the said amount to the sub contractor? what is the statutory period for the government department?
Regards.
ajay sethi
(Expert) 24 March 2015
commercial query . firm can afford legal fees
minsal
(Querist) 24 March 2015
Sir,
I am an advocate and I want to sent a notice to the contractee on behalf of sub contractor. can i sent a notice to them?
Rajendra K Goyal
(Expert) 24 March 2015
Draft and get it checked from some senior lawyer.