The Supreme Court has reproached public sector Pawanhans Helicopters Pvt Ltd for harassing a contractor by denying payments due for the work done for it. The court said that it has behaved "in a most unbecoming manner in pushing the beleagured contractor ever deeper into the chasm."
The Supreme Court set aside the Bombay high court order in favour of the helicopter company and asked it to pay cost of the litigation to the contracting firm, Associated Construction.
The construction was scheduled to be completed in four months, but it could not meet the deadline due to the fault of Pawanhans. Then there was disagreement over the bills. Pawanhans demanded a "no claim certificate" for release of payment. It was given "under duress" as the construction firm was in financial distress. The matter went to the arbitrator, who gave an award in favour of the contractor.
Then the government company moved the Bombay high court. Though the single judge bench stated that the delay was due to the fault of Pawanhans and the ‘no dues certificate' was issued under duress, a division bench took a contrary view. The Supreme Court found that the division bench ruling was not right and allowed the appeal of the contractor with cost.
BS Reporter / New Delhi June 03, 2008, 16:21 IST
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About Me
- Kamal Kumar Pandey (Adv. Supreme Court of India)
- Lawyer Practising at Supreme Court of India. Court Experience: Criminal, Civil & PIL (related to Property, Tax, Custom & Duties, MVAC, insurance, I.P.R., Copyrights & Trademarks, Partnerships, Labour Disputes, etc.) Socio-Legal: Child Rights, Mid Day Meal Programme, Sarva Shiksha Abhiyaan, Women Rights, Against Female Foeticide, P.R.Is, Bonded Labour, Child labour, Child marriage, Domestic violence, Legal Literacy, HIV/AIDS, etc. Worked for Legal Aid/Advise/Awareness/Training/Empowerment/Interventions/Training & Sensitisation.
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