Ghanshyam Dass v. North Delhi Municipal Corporation

(vi) Having regard to the fact that the appellants expect the respondents to stay their hands and not pursue their legal remedies for execution of the impugned judgments and decrees for a period mentioned hereinafter, it is agreed that interest shall be payable to the respondents on the principal amount after the expiry of three years and ninety days reckoned from the date the concerned Division had passed the bills of the respondents for payment. In other words, a cushion of 90 days is being provided to the Head Quarters of both the appellants for completing the administrative work of receiving and diarising the bills received from different Divisions and preparing a combined list for payment and it is agreed that for the said period, no interest shall be payable to the respondents.

(vii) It is further agreed that the appellants will not be liable to pay interest on the principal amounts payable to the respondents under the impugned judgments and decrees, for a period of three years reckoned from the date of expiry of 90 days mentioned above.

(viii) However, immediately on expiry of three years as noted above, if the amounts remain outstanding for any reason whatsoever, the appellants shall pay interest @ 9% per annum on the principal amount to the respondents, for the remaining period, till realization.

(ix) It is further agreed that the aforesaid arrangement of payment of interest by the appellants @ 9% per annum on the outstanding principal amount to the respondents shall continue only for a period of two years, reckoned from the end of the third year as mentioned in clause (vii) hereinabove. WP(C) Nos. 10055/2015, 10008/2015, 10028/2015, 10032-33/205, 10046/2015, 10051/2016, 10053/2015, 10057-58/2015, 10060/2015, 10064/2015, 11016-17/2015,11025/2015, 11027-28/2015, 11429/2015 11446/2015, 11449/2015, 11471/2015, 11531-32/2015, 11737/2015, 11780/2015, 11784-85/2015, 11789/2015, 11792-93/2015, 11796-97/2015, 11799/2015, 11803/2015, 11805/2015, 3891/2016,

(x) If the amounts remain payable by the appellants even thereafter, the respondents shall be entitled to seek legal recourse for execution of the impugned judgments and decrees and claim interest on the decretal amount from day one.

(xi) The respondents undertake that in view of the settlement arrived at with the appellants, as recorded RFA786/2016 & RFA 192/2016 above, they shall not take any steps to file execution petitions in respect of the impugned judgments and decrees, subject matter of the present appeals, for the period mentioned hereinabove.

(xii) As for the already pending execution petitions, orders passed in these proceedings shall be placed on record so that they can be disposed of by the concerned courts on the basis of the consent order, with liberty granted to the respondents to file fresh execution petitions in case of default on the part of the appellants, as has been detailed above.”

11 Learned counsel appearing for the Corporation (Mr. Sunil Goel) was also the counsel who had appeared before the RFA Court.

12 This consent order arrived at on 17.11.2016 inter-se those contractors and the Corporation will thus bind the parties in the present petitions as well. The respondent Corporation will strictly adhere to the timeline for releasing payment to the petitioners which is to the effect that besides the fact that no payment shall be released out of turn to any party, a period of three years and 90 days reckoned from the date the concerned Division has passed the bills of the Contractors for payment shall be the period from which the payment shall start to be made to the contractors. In other words, a cushion of 90 days is agreed to be provided to the Head Quarter/respondent for completing WP(C) Nos. 10055/2015, 10008/2015, 10028/2015, 10032-33/205, 10046/2015, 10051/2016, 10053/2015, 10057-58/2015, 10060/2015, 10064/2015, 11016-17/2015,11025/2015, 11027-28/2015, 11429/2015 11446/2015, 11449/2015, 11471/2015, 11531-32/2015, 11737/2015, 11780/2015, 11784-85/2015, 11789/2015, 11792-93/2015, 11796-97/2015, 11799/2015, 11803/2015, 11805/2015, 3891/2016, all administrative works of receiving and diarising the bills received from different Divisions and preparing the combined list for payment. Up to three years & 90 days, no interest would be payable by the Department to the contractors. However, even if after the expiry of three years, the amounts remain outstanding, the respondent Corporation will pay interest @ 9% per annum on the principal amount to the contractors for the remaining period till realization. The aforesaid arrangement for payment of interest by the respondent Corporation @ 9% on the outstanding principal amount to the contractors shall continue only for a period of two years reckoned from the end of the third year as mentioned in the sub-clause (vii) and if this amount remains payable by the respondent Corporation, even thereafter the contractors will be entitled to seek legal recourse by filing an execution of the entire amount and this order will be treated as a decree which would then become executable. The respondent Corporation has also ensured that the budget for realization of amount under the head of ‘non-planned expenditure’ will be increased so that the release of payment to the contractors can be expedited in the wait list even prior to the date of priority mentioned against their names. WP(C) Nos. 10055/2015, 10008/2015, 10028/2015, 10032-33/205, 10046/2015, 10051/2016, 10053/2015, 10057-58/2015, 10060/2015, 10064/2015, 11016-17/2015,11025/2015, 11027-28/2015, 11429/2015 11446/2015, 11449/2015, 11471/2015, 11531-32/2015, 11737/2015, 11780/2015, 11784-85/2015, 11789/2015, 11792-93/2015, 11796-97/2015, 11799/2015, 11803/2015, 11805/2015, 3891/2016, This Court thus notes that the consent order of 17.11.2016 reproduced in RFA No.786/2016 is modified to the extent that there being no judgment and decree in favour of the contractors in the present case; however all other terms and conditions which the respondent (as appellants in the RFA) has agreed and undertaken will be binding upon them and this order shall be treated as a decree which in the eventuality of non-payment (as per the terms detailed supra) shall become executable.

13 Needless to state that this order passed by this Court will be fully adhered to in true letter and spirit by respondent No. 1 and will thus not constrain any party to approach the Court on this count.

14 No further orders are called for on these petitions. They are disposed of.

INDERMEET KAUR, J JANUARY 23, 2017 A