Defect liability period will not arise when the work is not performed

Harji Engineering Works Private Limited Vs Punjab And Sind Bank (Delhi High Court)

Held that BGs can be invoked within/ before 90 days from the date of expiry of defect liability period. However, the defect liability period would arise only after the completion of the work.

Facts-

The appellant/plaintiff was approached and requested by respondent [Hindustan Steelworks Construction Limited (HSCL)] for help and collaboration in order to enable the respondent to successfully bid for a tender floated by National Thermal Power Corporation Ltd. (NTPC).

Post collaboration, the respondent was awarded the main contracts. The respondent bifurcated the entire work into civil works contract and structural works contract and awarded two sub-contracts of structural works contract to the appellant/plaintiff.

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