Payment for not completing the job. Case on individual.

1 year ago

my friend was in US, so I started the company on my name.He came to india, and hired a contractor to help setup farming system in our land in December 2021. In the mean time my friend was working on getting his aadhar card setup. I then added him into the company as director in April 22. The contract the company had signed with the contractor was due for completion by Jan 2021. We paid 90% of the amount as per the contract. The contractor didnt procure few material and it was delayed till May 2022. In May the contractor had asked for the balance payment without completing the task, we told him that the remaining payment would be released only after the dry run is complete as per the contract. The contractor stopped responding after that. He then sends email after 2-3 weeks stating that the project is long completed as per our satisfaction.The contractor wants my friends aadhar id, to put a case for recovering the 10%, since my friend was the one who dealt with the contractor.
Also as per the contract for every week delay caused by the contractor, the contractor has to pay us 0.5% of the total cost, which by itself is now more than the 10% that we owe the contractor on completion.