Replacement of store
kailash roongta
(Querist) 16 May 2012
This query is : Resolved
Dear Experts
Against a Railway order supply was made as per the terms & conditions mentioned in the purchase order.The supply was accepted and payment also made there of.After expiry of 40-45 days railway intimated to us that "supply made by us is not as per railway specification."We under the gurantee/warranty clause replaced the rejected quantity but railway imposed on us liqudates damages (L.D ) When protested by us they justified the same by writing to us that" purchaser i.e. Railway has the right to impose L.D for delayed supplies". This is despite the fact that we have fulfilled our end of contractand made the supply within original delivery period stipulated in the order and Railway also made payment.
Please adise can Railway impose on us L.D in view of above stated facts.
ajay sethi
(Expert) 16 May 2012
need to go trhough provisions of contract to advise you .
if supplies were made by you as per contract and payment received why did you replace the defective material as per railways instructions . it shows that you have accepted material was defective
M V Gupta
(Expert) 17 May 2012
Check whether the terms and conditions of supply provide for LD even after replacement of goods? If that be so the condition is unjust and unfair. To claim LD the Railways should have suffered actual damages and the amount claimed cannot exceed the damages actually sustained.You may try to appeal to the higher authorities. The condition can be challenged as one agreed to under undue influence and hence not valid.
