Regarding Recover of Withheld Payment
9 months ago
we have repair so many transformers against various work order for haryana electricity nigam i.e. UHBVN/DHBVN. The nigam withheld 5% payment from our payment against repair of transformers lot wise. The warranty period time is 24/30 month i.e. 24 month from the date of installation and 30 month from the date of delivery in nigam store. In warranty period clause the nigam mention 24/30 period subject to proper running and maintenance prove. But the nigam pressurized to repair all the damaged transformer without any proof wheather the transformer damaged due to our fault. Also the nigam not release our withheld 5% payment. The nigam even charges penal intrest if the damaged transformers not reapir within 60 days from the date of receipt the transformer in their store. Please suggest the best way to recover our withheld payment. our unit is a MSME HARYANA BASED UNIT. due to that reason we have face lot of financial problem.
Any disputes between the parties including delay in payment or charging of penal interest is required to be presented before the Facilitation Council constituted by the respective State Government. The Facilitation Council either decides the dispute itself or refers the disputes for conciliation under the provision of the Conciliation and Arbitration Act, 1996. If the disputes are not resolved through conciliation, then the disputes were referred for settlement through Arbitration. Under Sec.18 of the MSME Act, 2006, the Arbitrator has to solve the disputes and complete the proceedings within 90 days of reference. In view of the abovestated dispute resolution process, you need to represent the grievance that affects you financially before the concerned Facilitation Council for its redressal.
If the Haryana Electricity Nigam (UHBVN/DHBVN) has withheld 5% payment from your repair work orders and is not releasing the payment within the agreed terms, there are several steps you can consider taking:
Review the contract: Carefully review the contract or work orders you have with the Haryana Electricity Nigam. Understand the terms and conditions regarding payments, warranty period, and penalties for delayed repairs.
Document all communications: Maintain a record of all communication with the Haryana Electricity Nigam, including emails, letters, or any other form of communication related to the withheld payment and repair issues.
Request clarification: Reach out to the Haryana Electricity Nigam and request clarification on the reason for withholding the payment. Seek written explanations for their actions.
Seek resolution through negotiation: Attempt to resolve the issue amicably through negotiation with the concerned authorities within the Haryana Electricity Nigam. Present your case and provide evidence to support your claim for the withheld payment.
File a formal complaint: If negotiation does not yield results, consider filing a formal complaint with the Haryana Electricity Nigam or relevant government authorities. Be sure to include all relevant details and evidence in your complaint.
Explore mediation or arbitration: Depending on the terms of your contract, you may explore mediation or arbitration as a means of resolving the dispute outside of court.
Consult with a lawyer: If the issue remains unresolved, consider seeking legal advice and representation from a lawyer experienced in contract disputes and government contracts. They can help you understand your rights and explore legal remedies available to you.
Consider your MSME status: As a Micro, Small, and Medium Enterprise (MSME) in Haryana, you may have access to certain benefits and protections under the MSME Act. Be sure to explore how your MSME status might impact your options for recovering withheld payments.