I, being part of Pvt ltd. Co. supplier entered into contract with another Pvt. Ltd Co. Buyer for supply and installation of goods in the house of the buyer Co. Buyer Co. appointed 3rd party as Project Managers to oversee quality of work and payments though payments were made through cheques issued by Buyer Co.
No quality issues were raised in writing during work in progress. All work measurements etc passed by Project Manager.
Contract work was completed and payment not made by Buyer on some pretext or the other one of them being quality issue. After 4 months of completion Project Manager, under assurance to release full payment proposes for 5% deduction which seller Co. representative agrees, unwillingly, on plain paper signed by Project Manager. Payment still not released and further pressure from Project Manager to fore go another 5% for release of payment is being stressed. There is no difference in the quantity and amount of work. The only difference has arisen on the unreasonable deductions.
Seller has no alternative but to approach the Court and writes to buyer that earlier deduction of 5% by Project Manager, who is not part of the contract by way of tri-parte contract, was obtained under duress and coercion and is void and demands payment of amount due in full. Is this stand legally valid? Under what act and sections the buyer can be sued for payment with interest and damages?
Any clarification/document can be provided. Thanks in advance.
