Delhi High Court
Contract LawCivil Procedure and Evidence

Documented running bills establish contractual dues absent proof of discrepancies in measurements, quantities, or rates.

M/S Ambience Developers & Infrastrucutre Pvt Ltd vs Sanjay Rustagi & Ors

Delhi High CourtJUDGMENT: October 05, 20262 MIN READSOURCE JUDGMENT
Documented running bills establish contractual dues absent proof of discrepancies in measurements, quantities, or rates.. M/S Ambience Developers  & Infrastrucutre Pvt Ltd vs Sanjay Rustagi & Ors. Delhi High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The respondent, a contractor carrying out cladding and related work, was awarded work at Ambience Mall under a work order dated 23 March 2006.

Source reference: p. 2–3

The agreed payment terms provided for release of 80% against running or assessed bills, 10% on completion of a façade, and the remaining 10% on handover.

Source reference: p. 2–3, 6

The contractor raised bills for work at the Multiplex/Platinum Block and Hotel Block and alleged that substantial sums remained unpaid.

Source reference: p. 4–7

The appellant company disputed the bills and asserted that the contractor had abandoned the work in August 2006 and had been paid in excess.

Source reference: p. 4–7

The trial court decreed ₹24,90,143.90 with pendente lite and future interest at 12% per annum, but dismissed the claim for machinery valued at ₹6 lakh.

Source reference: p. 9–10

The company appealed under Section 96 CPC.

Source reference: p. 1, 10
02

Issues

1. Whether the contractor abandoned the project in August 2006, as alleged by the appellant

Source reference: p. 8; pp. 13–14

2. Whether the evidence supported the bills and the trial court’s determination of ₹24,90,143.90 as the outstanding amount

Source reference: pp. 10, 14–15

3. Whether the TDS certificate supported the respondent’s claim of liability

Source reference: p. 15
03

Law Applied

The appeal was brought under Section 96 of the Code of Civil Procedure, 1908, which provides for an appeal from an original decree.

Source reference: p. 1

The court applied the parties’ contractual payment terms under the work order.

Source reference: pp. 2–3, 12

It also reasoned that, once the contractor had submitted and proved the running bills, the defendants had to establish that those bills did not correspond to the work executed; a correction to one bill did not, without further evidence, establish errors in later bills.

Source reference: p. 14

No judicial precedents were cited in the judgment.

Source reference: no citation
04

Reasoning

The court rejected the abandonment defence because the appellant’s pleadings acknowledged that some work continued in September, its own account showed dealings into October, and a payment was made directly to the contractor’s labour on 21 October 2006.

Source reference: pp. 13–14

The appellant also produced no site engineer or other evidence establishing that the billed work was not performed or left incomplete.

Source reference: pp. 13–14

The contractor’s bills were supported by measurement records and weekly site reports, while the appellant identified no specific error in the later bills; the correction to the June bill did not prove that subsequent bills were inaccurate.

Source reference: p. 14

In calculating the balance, the court excluded ₹1,10,527 paid for the Hotel Block from the Multiplex/Platinum Block bill, leaving ₹24,90,143.90 due.

Source reference: p. 15

The TDS certificate was treated as corroborative of the liability, not as the sole basis for it.

Source reference: p. 15
05

Holding

The High Court held that the trial court had rightly found the appellant liable for ₹24,90,143.90, with interest at 12% per annum, and dismissed the appeal.

The claim for ₹6 lakh for machinery had been dismissed by the trial court and was not the basis for the decree under appeal.

Source reference: p. 10

The pending applications were disposed of accordingly.

Source reference: p. 16
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Code of Civil Procedure, 19081

Delhi High Court

Original Court PDF

M/S Ambience Developers & Infrastrucutre Pvt LtdvsSanjay Rustagi & Ors

Delhi High Court · October 05, 2026

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