Failure to adhere to delivery schedule
kalyanasundaram m
(Querist) 10 March 2012
This query is : Resolved
Sir
We have paid Rs 16.2 lakhs (90% of total)in December 2011 towards the delivery of Lift equipment. The company had promised to deliver the machinery by 15 Feb 2012 and complete the installation by March 2 week but they are yet to deliver the machine. We have paid the advance by availing bank loan at an interest of 14% pa.What are the remedies available to us for early delivery of the machinery and for the monetary loss because of the delay.
kalyan
Adv.R.P.Chugh
(Expert) 10 March 2012
Since it is a mercantile transaction where such high interest is involved - time is of the essence of the contract - which in simple parlance means :-
i) you can rescind the contract after giving them a notice - and then seek seek refund of advance u/s 64 Indian Contract Act, 1872 and Damages u/s 75 ICA.
or
ii) You can extend their time however still you would be entitled to damages on account of delay.
In either case first serve a notice.
Feel free to talk !
Raj Kumar Makkad
(Expert) 10 March 2012
It shall be better to search the exact reply of your query from the agreement duly executed between you and the company. Generally a clause of damages is inserted if the supplier do not perform its part of performance within a stipulated time. If such clause is there, invoke it,
It shall be better to serve a notice to the company well in advance prior to moving ahead.
Nadeem Qureshi
(Expert) 11 March 2012
Dear Querist
it's depend on your agreement without agreement's terms and condition we are unable to give you best advice.
feel free to call
JT Rajasuriya, Chennai
(Expert) 15 March 2012
Mr.Kalyanasundaram,
Manufacture, supply and erection of lifts are a time consuming affair. When orders are placed belatedly manufacturers find it difficult to deliver within short span of time.
There doesn;t seem to be too much of a delay. Talk to the people and convey your urgency.
