Client not obeying the contract and making payment
A few months back, I worked on a government project as subcontract from an IT company. In the work order, there were no strong agreements or NDA. But they mentioned a clause "back to back" payment - which means when the end client (govt org) pays to the IT company, they will pay to me. Now, I got a confidential (not official) info that the govt org has paid the complete amount to IT company. But the IT company is bluffing that they didn't receive money for the client. Is there a way to get the money? Can RTI to govt org for their payment helps?
note: Sometime back, I unofficially came to know that the project cannot be subcontracted as per the original order, but not sure.
Asked 2 years ago in Business Law from Chennai, Tamil Nadu
1) issue legal notice to IT company to pay your dues . in said notice mention that IT company has received payment of its dues from the govt
2) you can file RTI with govt whether IT company has been paid its dues or not
3) if no payment made inspite of notice file summary suit to recover your dues
1. Yes, you can send RTI to Govt. organisation seeking such details.
2. If still the IT company does not pay you, case of cheating and criminal breach of trust can be filed.
3. If there is arbitration agreement, you can invoke such clause as well..
The remedy is to file a lawsuit for recovering the money against the company in the civil court to claim the unpaid amount with interest. RTI is not required.
If the project cannot be subcontracted even then you are entitled to recover the money from the IT company as your services were availed by the company fully knowing that the order does not allow subcontracting.
Issue a lawyer's notice to the company before going to court.
The agreement by the client that he will pay only when he gets payment from end user itself is illegal. Whether he gets payment or not, it becomes his duty to pay for the services he availed as per the contract/agreement.
You can issue a legal demand notice asking for payment of your dues and may inform them that in the event of any further delay in settlement of the dues, you may have to move civil court or consumer forum against the firm for which the firm shall be held liable for the consequences.