Khaitan & Co represents Innova Captab Limited in High Court of Gujarat on Challenging Illegal Recovery and Withholding of Payments
The leading law firm in India, Khaitan & Co represented Innova Captab Limited in the High Court of Gujarat under writ jurisdiction, challenging the illegal recovery and withholding of payments. The matter involved unilateral recovery of alleged risk purchase dues from a 2021 contract by deducting amounts from invoices raised under separate 2024–25 rate contracts, without adjudication and in violation of principles of natural justice.
The court laid down a significant principle of law – High Court held that risk purchase recovery from an earlier contract cannot be adjusted against payments due under a separate and independent contract. Even if the contract stipulates recovery of any previous dues, those dues have to be adjudicated dues & not merely alleged dues. The court held as “principle of law” that tender clauses permitting deduction of government dues cannot override principles of natural justice and tender conditions, as dues have to be adjudicated dues and the liability needs to be crystallised.
The Khaitan & Co team for this matter consisted of Digant Popat (Partner) and Samruddhi Pawar (Associate).
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