Delhi HIgh Court

Delhi HC: MCD's Unpaid Bill Dispute with Construction Firm Resolved

Updated
Feb 14, 2026 11:22 AM
delhi-hc-mcds-unpaid-bill-dispute-with-construction-firm-resolved

Quick Summary: A legal battle over unpaid bills between M/S Jia Lal Kishori Lal Pvt. Ltd. and the Municipal Corporation of Delhi (MCD) was resolved. The court ruled in favor of M/S Jia Lal Kishori Lal Pvt. Ltd., stating the lawsuit was filed within the allowed time.

How the Dispute Started

In 2007, M/S Jia Lal Kishori Lal Pvt. Ltd. was hired to build a road under a bridge in Vivek Vihar, New Delhi. They sent a bill on July 4, 2014, for about ₹4.99 crore. However, the MCD rejected it on October 9, 2014, saying all payments had been made.

The Argument About Timing

The MCD argued that M/S Jia Lal Kishori Lal Pvt. Ltd. waited too long to take legal action, trying to bring back a claim that had expired with a new bill in 2024. They said the deadline to sue ended in 2017.

The Company's Position

M/S Jia Lal Kishori Lal Pvt. Ltd. responded with a receipt from January 4, 2023, which they said was proof that MCD owed them ₹25 lakh. They also pointed to several letters from MCD in 2023 and 2024 that supported their claim.

The Court's Decision

Judge Mini Pushkarna, on February 5, 2026, noted that the court should only consider M/S Jia Lal Kishori Lal Pvt. Ltd.'s claims and documents at this stage. The court found the lawsuit was filed on time because the main issue started in 2023, not 2014.

Important Documents

  • Receipt: Issued by MCD on January 4, 2023, acknowledging the debt.
  • Letters: From MCD dated February 6, 2023, and July 19, 2024, suggesting payment should be processed.

Legal Points

The court emphasized that issues about time limits are often a mix of facts and rules. They can't be decided without a full trial unless it's really obvious from the complaint itself.

Summary of Verdict

The court dismissed MCD's request to throw out the case, allowing it to go to trial. This decision highlights the importance of having clear paperwork and communicating on time in contract disputes.