Hi, We had recently won a Bid from BHEL through GEM Portal . They issued us the PO and asked us to start work at the earliest. Just went it was about to dispatch the material, BHEL has asked us to stop further works an don't dispatch until further communication. We had done all the works with out any advance and had also agreed to 90 days payment terms. Inspite of several reminder mails, no one is responding. Now we are in losses at this work, so please guide how to take it further. Following is the response from BHEL: "Please do not initiate any action for the hold quantities of above orders such as procurement of raw material, fabrication, machining, testing, packing, dispatch, etc. as BHEL will not be accepting the hold material and will not process payment. This comes into force with immediate effect. We will intimate you once the hold is lifted. We thank for your understanding and kind co-operation. Inconvenience is deeply regretted" Regards
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1) Send an email that you had already started work on receipt of PO and material was ready for dispatch when stop work instructions were issued
2) That if materials not accepted you would suffer loss of x amount
3) request them to kindly accept material and make payment as per PO
4) if no response is received file writ petition in HC to direct BHEL to honour the purchase order and accept delivery of goods
BHEL is liable to pay for the work completed subsequent to PO till the communication to stop the work. You are also entitled to recover actual expenses incurred in preparation of remaining work. As held by SC in ABL International Ltd. & Anr vs Export Credit Guarantee , you can directly approach SC by filing a writ to recover your dues without approaching civil Court.
Dear Client,
Supply shall be completed within 3 months from the date of receipt of purchase order.
In the absence of a formal contract, a purchase order serves as a legally binding document only after it is accepted by the vendor.
Thank You.
Dear Client,
Supply shall be completed within 3 months from the date of receipt of purchase order.
In the absence of a formal contract, a purchase order serves as a legally binding document only after it is accepted by the vendor.
Thank You.
You may have to visit the the terms and conditions of the tender or the agreement which is a documentary evidence for this task.
If there is any violation or breach of the contractual condition committed by the BHEL, then instead of having further communications from your side, you can resort to legal action by first issuing a legal notice through your lawyer demanding the performance of the contract from their side and express that you are always willing to perform your side contract as per the terms and conditions.
If you do not get a proper reply or if they do not comply with the demands made, you may file a suit for specific relief before the concerned court expressing your grievances due to the breach of the contractual conditions and pray for the reliefs accordinlgy including cost towrds the damages you suffered due to this.
Based on the MoU signed with them, arrange to issue a notice to them through a local lawyer, demanding they honour the contract without fail and giving the a deadline to act. Afterwards, if there be no positive development, file a suit at the proper court for specific performance, in consultation with your lawyer. Lodge a written complaint with the ministry concerned for necessary redress.
You can go against him in consumer court he is your service provider. Otherwise you need the file civil suit for breach of contract or specific relief act for its performance
Dear Sir,
Once accepted it cannot be rescinded unilaterally so you can get issue a strong legal notice and claim huge damages/compensation if such with hold order is not lifted immediately and proceed to file civil case against them.
