Apex Law Journal
Apex Law Journal
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Editor

Neha Goel, Advocate

Advisory Board

S.C. Khunger, Advocate

Rohit Bansal, Advocate

Varinder Singh Kanwar, Advocate

Hittan Nehra, Advocate

Judgments on No Due Certificate

Thursday, January 27, 2011
No Due Certificate

No Due Certificate — After going through several decisions of this Court, the following principles emerge:

 

(i) Merely because the contractor has issued “No Due Certificate”, if there is acceptable claim, the court cannot reject the same on the ground of issuance of “No Due Certificate”.

 

(ii) Inasmuch as it is common that unless a discharge certificate is given in advance by the contractor, payment of bills are generally delayed, hence such a clause in the contract would not be an absolute bar to a contractor raising claims which are genuine at a later date even after submission of such “No-claim Certificate”.

 

(iii) Even after execution of full and final discharge voucher/receipt by one of the parties, if the said party able to establish that he is entitled to further amount for which he is having adequate materials, is not barred from claiming such amount merely because of acceptance of the final bill by mentioning “without prejudice” or by issuing ‘No Due Certificate’.  

 
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