Diwaker Singh (owner) 20 January 2010

delay in payment to auth. Service Provider

Dear Lawyer

We are a auth. service provider of a industrial equipment/plant Manufacturer. We provide service for erection Installation & commissioning. We had successfully completed the work and handed over the equipment to Buyer Company (a govt. of India enterprises). The buyer company had provided satisfied work completion certificate to our principal company after equipment testing.

Now the Principal Company is not paying us the charges of Installation & Commissioning from 05 month after handing over the work completion certificate. As they have taken 100% full payment in advance with installation & commissioning cost before dispatch. When we ask for payment they always say’s to wait for some time. it is regular from 5 month.

What should be the first step of Legal action without distrubance ?

Please advice

Thanks

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2 Replies

Devajyoti Barman (Advocate) 20 January 2010

You could either file suit for recovery of money or initiate arbitration proceeding if there is any arbitration clause.

Daksh (Student) 08 February 2010

Dear Mr.Diwakar,

I do concur with Mr.Devajyoti Barman and would like to add. In case you wish to initiate legal proceeding being PSU it comes within the defination of state you can file a Writ Petition as well and for initiating any action subject to the concerned High Court Rules you have to seek permission for the same. As a prudent precaution take a dig by filing RTI seeking details of books of accounts of the PSU as to whether this amount is shown as a debt.

Thanks and best regards

Daksh

delay in payment to auth. Service Provider

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