- This topic has 5 replies, 4 voices, and was last updated 1 year, 5 months ago by
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Hi everyone,
I’m reaching out because my family is going through an incredibly tough time, and we need advice on how to handle a dire situation legally and practically.
Background:
We’re a middle-class family. My father used to work in a private company but started his own construction business (thekedari) after I got my job. Things were going well until we took on a major project to build a substation for a reputed Tata company.The Issue:
At first, everything was smooth—payments were made on time, and the project was progressing well. However, about a month before Diwali, payments stopped coming in. Despite repeated inquiries, the company gave no clear explanation. By this time, the project was 90% complete, and they asked us to finish the remaining work, promising to release the full payment after completion.We were in a tight financial situation, but I gave money from my savings to help my father finish the work. Once the project was completed, they demanded that we obtain government clearance for the project, even though this was not part of our contract. The company was supposed to handle this since we were contractors, not direct parties to the government.
Reluctantly, we managed to get the clearance from government official (which involved 10k extra from our pocket ) and submitted the acceptance letter to the company. Yet, even after more than a month, they have not cleared our retention money. Instead, they are releasing small, inconsistent payments that are of little help.
To make matters worse, my father had taken on a large debt at a very high-interest rate, assuming the company would honor its payments. Now, our monthly EMIs are close to ₹80,000, equal to my entire salary. We’re struggling to make ends meet.
The Company’s Excuses:
When we confront the project manager or general manager, they make vague promises about releasing payments by the end of the week, which never happens. They claim their accounts team doesn’t work on Saturdays and keep delaying the process.On top of that, they’ve started deducting an additional 10% from the retention money, claiming this will be paid when they receive payments from the government. This was never mentioned in our contract, which explicitly states we’re entitled to full payment upon project completion.
Our Current Situation:
We are mentally, emotionally, and financially drained. While we’ve heard of other contractors shutting down their office in similar situations (which forced them to release payments), we want to resolve this issue legally and within the bounds of the law.Need Advice:
1. How can we ensure that the company pays us the full amount, including the retention money, without further delays?
2. Is their deduction of 10% retention money without prior agreement even legal?
3. What legal actions can we take against the company for breach of contract and delayed payments?
4. Can we leverage our political and police connections in a legal manner to escalate this matter?
We’ve tried everything—pleading, begging, and negotiating—but nothing seems to work. This situation is affecting my family’s mental health and our ability to survive. Any advice, legal or otherwise, would be greatly appreciated.
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SI don’t think Money related matters could be settled through Police stations, you have to approach court for that.
If those things are in violation as per your contract you are entitle to claim for damages and if the court found it reasonable you’II be compensated for all the losses incurred.
Its a remedy available for you legally.-
UProblem with court is it will take a really long time. We need this money asap. As I have already mentioned our debt is way too high. Company is way bigger than us. And for fighting a case also we will need money.
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DHi. This is highly unfortunate and unprofessional.
You went above and beyond the terms of agreement, hoping there is one and you have it.
That said, there’s a procedure for filing summary suits for contracts under the CPC, which i think is the best recourse to get your money back asap.
Please reach out if you need any further assistance. I am an advocate and I’ll try to help as best as i can
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