Vidya Devi v. North Delhi Municipal Corporation

1 This order shall dispose ofthis/batch ofwrit petitions.

2 At the outset, it is pointed out that a bunch ofsimilarly placed contractors had/fijedvee^ had beenLdecreed in their favour against which d'fegui^ FirsT'llppeal had been filed. That Regular First Appeal had been disposed ofby a Single Bench ofthis • Court on 01.12.2016(RFA No.786/2016);it was based on the consent order dated 17.11.2016 arrived inter-se the parties

3 This Court notes that these writ petitions arise out of the 2017:DHC:8324 V- J Corporation. All the petitioners are duly registered contractors registered with the respondent Corporation and have been carrying out various works of the respondent. The petitioners having completed the said works to the satisfaction ofthe respondent for which bills had been prepared and certified but complete payment not having been received by the petitioners had accordingly been constrained to file these petitions. Contention of the petiti'o.ners being that they are claiming only--those bills whicfc-had been dhi^■^ceMfled for payment and for whi'chmd^mount hadbeenpaid. '' a

4 The stand of the respondent was that there is a specific clause in the agreement which is binding upon the parties and which was to the effect that ^e payi^ht'b|rt|e;;p^ss bp subject to the availability of funds 'jnipartrcular headi^^o apcbuht from time to time and the payments shallbe made-.strictly"on queue basis i.e. first the past liabilities will be cleared and after the release of payments for past bills only then the case of the petitioners would be considered; interest would also not be payable. ry^ i

5 The relevant extract of Clause 7 ofthe 'General Conditions of Contract for Municipal Coiporatiori of Delhi Works' highlighted by the respondent Corporation is reproduced herein as under;- "The payment ofpassed bills will be subject to availability offunds in particular head ofaccountfrom time to time in MCD. Payment ofbills shall be strictly on Queue basis i.e.first the pastliabilities will be cleared and after that the release ofpaymentfor passed bills be in order ofthe demandreceivedatHQ underparticular head ofaccounts. No interest shall be payable to the.contrmtor-mepse ofdelay in payment on account of non-availability offunds in the,particularfead ofaccountofMCD."

6 This beirighhe stand.oTthe respondenfCorpdration,the petition had progre'sseci-^nd the matter-wasto betaken up fpn-fiial hearing. n 7 However, at this stale'l asmot^'supra, attention|pf this Court has been drawn to the judgmpht passed by the Single|Bench ofthis Court in 'KFA NQ.=,dddd!(flhpihese RTAs,had-,arisen out of decrees which had enuredTh'favour;oh-such hke.hpnt who had preferred to file civil suits instead offilmg writ petitions.

8 In the course ofthese proceedings on 07.09.2016,the additional submission ofthe respondent was noted which was that the payments being asked for by the petitioner are under'non-planned head'and the petitioner will have to stand in queue along with others; submission of planned head' and the money under the 'non-planned head' is being mis-used i.e. for purpose other than those purposes for which it is required to be used. The respondent had been directed to place on record an affidavit stating the amounts expended in the 'non-planned head'. This affidavit is on record and the details of money sought to be expended in the'non-planned head'have been given.

9 Courtis ofthe viewfhattlLecordefs.passed;in RFA No.786/2016 this Court is;6fthe viewThat thea^^^^^^ canmls%be disposed off on the same terms and conditipnSriaS;|hdre is no disghte'Cto the factthat the case otihese petitionershs s|mildi|to those who wereSjparties in the M t. fNi'WU RFA.

10 The terms pf tie cbhsdiff'order and reproduced in RFA:Nd;.jSi/SQf[6] redd/as>'-''i^.>-^" "(0 The appellants shallfilefresh compilations, complete in allrespects in respect ofthe respondents and the other contractors, irrespective of. whether they, have filed any appeals/suits ofrecoveiy or not, so that there is a clarity about their priority in the wait list.

(ii) The appellants undertake to.strictly adhere to the timeline mentioned in the compilation,for releasingpayments to the respondents.

(iv) The appellants shall ensure that the budgetfor release ofamounts under the head of Non-Plan Expenditure is increased on a regular basisso thatthe release ofpayments can be expedited to the respondents and other contractors in the wait list, even prior to the dates ofpriority mentionedagainsttheir names. j (v)Theappellantsshalluploadthecompilationon theirwebsitesforeaseofaccessand update it regularly at the end ofeach monthfor the respondents and others to know.what their status is in the wait list.

(vi) Having regard to thefact that the appellants expect the respondents to stay their hands and not pursue their legal remediesfor execution ofthe impugnedjudgments and decreesfor a period mentioned'hereinafter, it is agreed that interest shall be payable to the re.spondents on the'principal:amount'after the epcpiry ofthree years and ninety days reckonedfrom thesdate-the/cdncernedHiviswn hadpass'MfhPsfUls.pfthe respondentsfor payment.In other yj'brSs, a cushion of9U days is beingprovided to'tjie Head Quarters of both the appellanisjfor completing-theLadmimstrntive work ofreceivinganddiarising the bills receivedfrom differentDivisions.(andipreparmgacombinedlistfoijpaymentanditis agreedthatfor the saidperiod, no interestshalkbepayable to the respondents.

(vii) It is further agreed that t.he,,lappellahts yvill not be liable to pay interest on the principal amounts payable.tofihej-Eespqndents Mndeif<the impugned judgments and decrees, for a period/of three y'ears-reckoned frdm'fhe:'date df expiry of 90 days mentioned above, j ' n ■- ' ■' " '".i - " f •• • 'i. V •.. -r •- •.. -V

(viii) However, immediately pd expiry of:three year.S'd' s noted above, if the amounts remain outstandingfor any reason whatsoever, the appellants shallpay interest @ 9% per annum on the principal amount to the respondent^ for the remaining period, till realization.

(ix) It is further agreed that the aforesaid arrangement ofpayment of interest by the appellants @ 9% per annum on the outstanding principal amount to the respondents shall continue onlyfor aperiod of two years, reckonedfrom the end of the thirdyear as mentionedin clause (vii) hereinabove. (x)Ifthe amounts remain payable by the appellants even thereafter, the respondentsshall be entitled to seek legal recoursefor execution ofthe impugnedjudgments and decrees and claim interest on the decretalamountfrom day one.