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P K GHOSH   05 May 2014 at 12:26

Claim periods for bank guarantees submitted for contracts

As part of the contracts that we execute for implementation of projects for various clients, we need to essentially submit the following Bank Guarantees (BGs) to them;

 To draw advance from the client, for which a BG of equivalent value is submitted, normally valid till the adjustment of all advances from the running bills.

 For covering performance of the completed project during the warranty period, which could range from 12 to 24 months, and this is normally linked with the release of the last 10% payment of the contract, payable on submission of the BG.

In both the above cases, the clients ask for a claim period after the expiry of the validity of the BG, so that in case there are any claims from them, this could be raised during the claim period. The claim period, as stipulated by the client, normally ranges from 3 months to 6 months.

So far we had been submitting BGs in both the above categories, to our clients, incorporating the clauses as worded by the client and generally accepted by the banks, (in some cases with minor modifications). The validity and the claim periods mentioned in the BGs were as per the stipulation of the client, as mentioned in the contract with them.

Recently, however, our bankers have been demanding that irrespective of the claim period asked by the client, the BGs would be issued by them with a claim period of 1 year minimum. On seeking clarifications from them, they have informed as below:

“Department of Financial Services, Ministry of Finance , Government of India vide their letter dated 24.01.2013 had informed that the Banking Laws (Amendment) Act came into effect w.e.f. 18.01.2013 as regards to change in Limitation Act as per India Contract Act, 1872 u/s 28. As per the new Act the minimum claim period is 1 year irrespective of the expiry date.”

While we are not very sure whether the bank is acting on the correct premises, (since we do not have a full picture of the related provisions), on checking with other banks, we gather that no such measure of charging for 1 full year of claim period, even if the beneficiary needs a lesser claim period, is being enforced by them.

Prima facie this stipulation seems illogical, since besides making us unnecessarily pay commission and block funds for a longer period, it also exposes us to unforeseen liabilities and risks, because the client is being given an encashment option even beyond the period sought by him.

We would be obliged to get an informed view on this to take it up further with the bank.

PK GHOSH
BHUBANESWAR

Kapil   05 May 2014 at 12:00

It laws

Hello All,

My query is relating to IT field :-

1. We have Assembled machines in our organisation,

2. We have purchased licenses with micro soft with following details

i. Microsoft Open License Agreement for Windows XP Professional English UPG OLP NL - 120 Nos on 17th march 2003

ii. Microsoft Open License Agreement for Windows XP Professional English UPG / SA Pack OLP NL - 80 Nos on 27th Oct 2006

iii. Microsoft Open License Agreement for Windows Xp Professional English Upg/SA Pack OLP NL - 10 Nos on 29th Sept 2006

iv. Microsoft Open License Agreement for Windows XP English UPg/ SA Pack OLP NL - 51 Nos on 27th Oct 2006

3. On March 2014, we receive the letter from Microsoft that they want to do Internal Audit for Usage of Microsoft Products at our organisation

4. During the discussion with them, we have given details of licenses we hold for Microsoft with the details of above.

5. Now today they are saying that to give full entitlement of these Paper Licenses which are Upgrade licenses, we need to show them the invoices of the Original Operating System Windows XP which we have bought.

6. And with this point they are saying that we are not complying due to this clause and we need to buy these licenses for Windows 8 which is current version available.

7. Now Microsoft is saying that in the absence of the Original License, Paper License has no substantial Value.

So now I have few questions like –

1. Can Microsoft demand such huge amount when they themselves issuing Paper License ?

2. Is there any Time Limit ? Like as per the Income Tax Act, records of the documents shall maintain only upto 6 years.

3. Whether the Paper License which is issued ( in the absence of the Original Key ) can be considered as Original Key ?

4. Can we prohibit Microsoft from entering in the premises of the company to check how much computers we have ? Can they enter in company’s premises for the purpose of audit without company’s permission ?

5. If I deny Microsoft to enter company premises for audit purpose, can court will allow Microsoft enter in my company for audit by passing order. Means whether court order is essential for the audit purpose ?

6. In that furtherance what are the powers & limitations of the Microsoft?

7. If I have to take action against Microsoft for the Illegal Demand of Penalty, which would be the proper forum ? Can I file a complaint under Cyber Laws ?


Juzer Lakkadghat   05 May 2014 at 11:32

Issues relating to shop area

I have a shop in Pune. The area is not a registered society. Its connected to a marriage hall. The hall owners want to convert the entire area into a commercial cum residential complex. Builder wants it to have 2 sided display of shops, where one u climb down to the basement and one you climb up to first floor. So do we have the right to demand for:-
1) An extra shop or more space in the existing shop?
2) Rent when the construction is going on?
3) Any more rights that we can gain access to?

KETAN J SHAH   05 May 2014 at 11:26

Payment of stamp duty on conveyance document

Respected Sir's

I M a landlord/ Developer of my property.
The society has been formed. Process of conveyance is to be completed.

I want to know that when I give the conveyance to the society some stamp duty will have to be paid on the market value of land then who would be responsible for payment myself or society members

Please advice.

Thanking you in advance

Senbagam mani   05 May 2014 at 11:22

Transfer of property

Sir, as my dad expired on 26th july 2012. our home was in my dad's name, he has nominated my mom's name in the Share Certificate. now the society chairman is asking for a letter to change the room in my mom's name... can any 1 plsz tell me the format of the letter?

Sunil   05 May 2014 at 11:03

Fence/grill in my stilt parking

I have a stilt parking in my society. I park 2 cars in the stilt. Recently due to nuisnace created by the passerbys going to the garden through my parking, lot of damages are done to my cars and any work carried out by any of the members, the debirs is kept near by garage through passing by my stilt. Since last 2 years i have been telling the socy to take action but in vain. Recently i have put a 3/4th Fence/Grill and closed the way. The socy has threatened to remove it for which we are in head to head and have asked the BMC to intervene. They also threatened us by sending unauthorised notice to remove it within 12 hours. They also trouble my mother who is a sr citizen through phone as to when we are removing the grill. Most of the members in the socy have put huge grills for years together.

Kindly guide.

sonal   05 May 2014 at 10:43

Experts pls guide


I want to know my client is a director in film industry..He is making a film in which he wants to show india-pakistan T20 world cup match clippins.. PLs tel me whts the procedure? soemone told you have to take permission from star network who has rights of this match but i also been told that 40 sec clipping is free and no permission required..

pls experts treat this very urgent and guide me and film is pending for long.

Also i wrote application to star network in gurgaon but no response..PLs tel me how to contact them if there is any need ?

I will be grateful.

regards
sonal

gopal   05 May 2014 at 09:40

Regarding vakkalat

Most Respectable Experts,

my father is willing to file case in consumer commission. i am going to file on behalf of him. in this situation,

do i Have to submit Vakkalt in the commission on behalf of my father.

kindly guide me.

thanks and regards
gopal

Dhiraj A Rajhans   05 May 2014 at 09:28

Case law

I have a head note of a case law.
I want the name of the parties or citation of the same. I have tried my level best to search for the same.

Stay of suit _ Question as to whether the matter in issue is also directly and substantially in issue in a previously instituted suit can be determined only after the issues are framed in both the suits _ Unless such issues are framed the application u/s 10 of CPC for stay of the suit cannot be entertained _ Impugned order cannot be sustained and liable to be quashed and set aside. (Bom HC)

DINAKARAN   05 May 2014 at 09:18

Things to be considered before we purchase land or building

Dear Experts,
What are the things to be consider before we buy the property of land & building?
How to decide Whether we buy the property or not?
Please guide me.
Thanking You
Regards
J.Dinakaran
9444151658