• Clear doubts about escalation and de-escalation of diesel

Dear Sir/Mam,

I am working as a coal transporter in Jaiprakash Power Ventures limited since 26 May 2015.

Company issue me a work order in that no clause is mentioned for escalation & De-escalation of diesel prices after few months on 25/07/2015 an amendment is issued against the work order that the base price of diesel is the price of diesel of the nearest IOC depot as on date of issue of this amendment in that it is mentioned the the above will be effective from 01/08/2015.
So i want to clear you that what will be my base price of diesel.

I am raising my bills on fortnightly basis then the base price of diesel will be the price of diesel on 1st. day of the month or on 16th.day of the month.
But company is saying base price is the price of diesel on 25/07/2015
After that company issue a new amendment on 19/11/2016 in that base price is clearly mentioned Rs.53.44 per Litre w.e.f 01/08/2015, Is it possible that the amendment comes into effect from back date.
Asked 7 years ago in Business Law

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9 Answers

1) it is necessary to peruse the work order and amendments issued by JPV

2) amendment can only have prospective application

3) it cnanot be applied retrospectively

4) contact a local lawyer . it is necessary to peruse the wordings of work order and amendments issued

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

1. this is a contract and any amendment or novation in the terms of the contract is not binding unless it is accepted by the other party to the contract.

2. you have right to communicate and seek clarity towards terms of the contract.

3. if you accept this new term effecting from the back date then the amendment it possible because according to section 50 of the contract act, acceptor has right to absolve the other party to any extent. therefore you can accept it from retrospective effect.

4. you have right to dissent and send him a notice that retrospective effect is not permissible.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

1. according to section 62 of the indian contract act, every novation or change is called a new contract and you have right to reject it and stick with the old contract without any change or make counter offer on the new terms. (s.k.singhania vs union of india 2001)

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

1) terms of work order are binding upon company

2) no amendments can be made in work order without your consent

3) if you accepted amendments base price of Diesel would be price of diesel on date of issue of amendments ie 25 th July 2015

4) the second amendments is not binding upon you

5) you have to sue company to claim refund as per contract

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

So i want to clear you that what will be my base price of diesel.

Your question itself is having an answer to this, i.e.,

"after few months on 25/07/2015 an amendment 1st. is issued against the work order that the base price of diesel is the price of diesel of the nearest IOC depot "

After that company issue a new amendment on 19/11/2016 in that base price is clearly mentioned Rs.53.44 per Litre w.e.f 01/08/2015, Is it possible that the amendment comes into effect from back date.

The amendments can have a retrospective effect too, it is company's policy, if you are aggrieved by this you may approach court seeking the desired relief due to this.

T Kalaiselvan
Advocate, Vellore
85369 Answers
2231 Consultations

5.0 on 5.0

After that company issue a amendment 2nd. (that i not received) on 19/11/2016 in that base price is clearly mentioned Rs.53.44 per Litre w.e.f 01/08/2015.

Question:-How is it possible to get my amount refunded that will be deducted according to amendment 1st.

You can calculate the difference in price for the period from which this amendment came into effect till the date of claim and the claim papers may raised before the organisation accordingly.

If the authorities are not agreeing to the calculations you have made and if they submit their own and reasonable

calculation, if it is okay for you, then you may accept it or else you can refuse to accept the injustice to you and then take up this issue legally for availing your dues.

T Kalaiselvan
Advocate, Vellore
85369 Answers
2231 Consultations

5.0 on 5.0

If any amendment was unilaterally introduced then it could only have a prospective and not retrospective effect. Be that as it may, without a threadbare perusal of the work order it is not possible to state anything. So consult a lawyer with a copy of the work order which ranks sacrosanct.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

After the work order came into being it is binding on both the parties. No amendment could have been carried out unilaterally and then pushed down the throat of other party. You are free to file a civil suit for recovery to recover the losses and also seek specific performance of the work order.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1. company is trying to retract from its previous position.

2. if it will be not beneficial for you. yo can refuse to accept this clause because terms of the contract once again open when one party seeks changes in the contract.

3. you have right to refuse this amendment and stick with the previous or you can make another counter offer in respect of this new term. section 62 contract act.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

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