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From discharge voucher to penalty under CCI order, here're key court orders

The court asked the Railways to appoint an arbitrator and proceed with arbitration expeditiously as the contractors have waited for a long time for payment

A judge hitting gavel with paper at wooden table. (Photo: Shutterstock)
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M J Antony
Perils of signing discharge vouchers

It is common for the employer to demand discharge vouchers from contractors before paying the final amount. But this could lead to bitter litigation, as the dues could still be disputed. Two such cases were decided by the Supreme Court last week with opposite results. The first case was an appeal of the Railways, which claimed that its contractors had signed discharge vouchers and therefore, there was no need for arbitration. However, the Supreme Court ruled that an arbitration agreement will stand even if the contractors accepted an amount and signed discharge certificates in