Case Law Details
Haryana Vidyut Prasaran Nigam Limited (HVPNL) Vs Cobra Instalaciones Y. Services (Delhi High Court)
Facts- Haryana Vidyut Prasaran Nigam Limited (HVPNL) and M/s. Cobra had entered into some agreements. However, the works stipulated under the Agreements were not completed by the scheduled completion date, that is, on or before 27.06.2013.
On 24.09.2013, Cobra submitted the completion status for certain works as on 03.07.2013 and stated that the delay in completion of the Project works were caused, inter alia, due to non-availability of soil; delay in opening of LC; late vendor approval; late issuance of Dispatch Instructions; slow progress at site due to rainfall; late approval of civil and electrical drawings amongst others. And, requested HVPNL to grant extension of time for a period of seven months, that is, till 31.01.2014.
Thereafter, on 31.12.2013, HVPNL informed Cobra that since the works could not be completed within the said period, HVPNL deducted Liquidated Damages from the Running Bills of Cobra at the rate of 0.5% of the contract price per week, in terms of Clause 26.2 of the GCC, and charged interest on the deferred amount.
Cobra, by its letter dated 03.11.2014, stated that the delay was for various reasons beyond the control of either parties. And, since no loss had occurred to HVPNL, it requested HVPNL to grant extension of time without any financial implications. Cobra further requested for reimbursement of Sales Tax/VAT on bought out items.
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