Delhi District Court
M/S Creddene Healthcare Pvt. Ltd vs All India Institute Of Medical Sciences on 18 August, 2025
IN THE COURT OF DR. NEERA BHARIHOKE
DISTRICT JUDGE (COMMERCIAL COURT)-06
SOUTH EAST, SAKET COURTS,
NEW DELHI
CNR No. DLSE01-007891-2024
CS (COMM) No.2935/2024
M/s Creddene Healthcare Pvt. Ltd.
Registered office at:
D-65, NA Defence Colony,
Suite-ZBC-011, Ground Floor,
New Delhi - 110024
Through its Director
Tarun Sharma
... Plaintiff
Versus
All India Institute of Medical Sciences
Mangalagiri, Andhra Pradesh,
Department of Health and
Family Welfare,
All India Institute of Medical Sciences (AIIMS),
Ministry of Health and Family Welfare at
All India Institute of Medical Sciences,
Old Tb Sanatorium Road,
Manglagiri, Guntur,
Andhra Pradesh -522503,
Through its Director
Dr. Mukesh Tripathi
....Defendant
NEERA
BHARIHOKE
CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 1 of 41
Digitally signed
by NEERA
BHARIHOKE
Date:
2025.08.18
16:22:33 +0530
Date of institution of the suit : 01.08.2024
Date on which judgment was reserved : 11.08.2025
Date of pronouncement of Judgment : 18.08.2025
JUDGMENT
SUIT FOR RECOVERY
1. By way of this judgment, I shall decide the suit of the Plaintiff filed for recovery of Rs.4,74,763.80/- alongwith interest.
CASE OF THE PLAINTIFF AS SET UP IN THE PLAINT
2. Brief facts of the case as stated by the Plaintiff in the plaint are that:
a) Plaintiff is a Private Limited Company and is engaged in purchase, sale and installation of various medical equipment and machinery. The present suit has been filed through Mr. Tarun Sharma, Managing Director and Authorized Signatory of the Plaintiff who has been authorized vide Board Resolution dated 05.09.2023 to file the present suit on behalf of the Plaintiff.
b) Defendant is the All India Institute of Medical Sciences situated at Andhra Pradesh. An agreement was formalized on 13.12.2022 through a competitive bidding process on the platform provided by GeM on its website i.e. www.GeM.gov.in.
NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 2 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:22:40 +0530 Subsequently, on 31.12.2022, Contract Number GEMC- 511687770688493 was executed.
c) Contract Number GEMC 511687770688493 delineated the provision of specific goods, as listed below, in return for a total consideration of Rs.64,82,600/- (inclusive of taxes) :
Sl. No. Product Name/Goods name Number of units 1 Humidifier for HFOT 40 2 Mountings for Holding Humidifier 40 3 Nasal Cannula for HFOT 200 4 Disposable breathing circuit with 150 inbuilt humidifier chamber for use of HFOT 5 Safety Valve while use of HFOT 150
d) Plaintiff has installed the abovementioned goods on 24.03.2023 as per the contract.
e) Defendant failed to issue installation reports on time and because of its own negligence the payment of contract amount was not released on time and it was unexpectedly delayed by the Defendant.
f) Plaintiff sent several intimations for release of payment, but the Defendant kept on denying the payment.
NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 3 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:22:46 +0530
g) The Plaintiff preferred a Pre-litigation/Pre-Institution Mediation before the Competent Authority, i.e. SEDLSA, on 12.10.2023, however Defendant did not appear before the Competent Authority nor paid the mediation fees.
h) On 21.10.2023, Defendant made the part payment of the principal amount of Rs.63,82,600/- and deducted Rs.1,00,000/- from principal amount.
i) Defendant did not follow the course of law and, without referring to the Mediation Cell, paid the part payment of principal amount i.e. Rs.63,82,600/- and there was no settlement entered into by the Plaintiff and Defendant with regard to the deducted amount and interest amount. The Plaintiff preferred a Pre-litigation/Pre- Institution Mediation before the Competent Authority, i.e. SEDLSA, on 20.11.2023. The Defendant paid mediation amount of Rs.7,500/- after receiving the notice, but thereafter, Defendant did not appear before the Competent Authority. Furthermore, the Non- Starter Report for the Pre-Institution Mediation was issued by the Competent Authority, SEDLSA, dated 27.04.2024.
3. Hence, the present suit was filed on 31.07.2024.
4. Vide order dated 08.08.2024, my learned Predecessor recorded the submissions of learned Counsel for Plaintiff that Plaintiff issued notice to NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 4 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:22:53 +0530 the Defendant and also filed application for pre-institution mediation. After filing of the application, the Defendant made the payment after deducting Rs.1,00,000/- on account of delay in installation. The Defendant also did not provide the certificate for the TDS amount. Plaintiff filed another application for pre-institution mediation. Learned Counsel for Plaintiff submitted that a person who was not duly authorized by the Defendant appeared and thereafter, the Defendant stopped appearing. Plaintiff was also claiming interest, 18% p.a.
5. My learned Predecessor asked whether there was agreement regarding payment of interest to which learned Counsel for Plaintiff submitted that as per terms on the GeM portal, payment has to be made within 10 days of the installation. It was then observed by my learned Predecessor that Plaintiff is claiming the interest under Section 3 of the Interest Act and for this the Plaintiff needs to place on record the notice by which interest was demanded from the Defendant and that the Plaintiff can claim interest only at the rate not exceeding the current rate of interest as defined under Section 2(b) of the Interest Act. It was also observed that the period for which the interest is claimed and the amount are to be clearly mentioned in the plant as provided under Order VII Rule 2A (2) CPC as amended by Commercial Courts Act.
6. It was observed that learned Counsel for Plaintiff may examine the issues and take necessary steps for removal of the deficiencies. It was also observed that if required plaint can be amended and the copy of notice can also be placed on record with the fresh index.
NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 5 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:22:58 +0530
7. On 30.08.2024, the application for amendment of the plaint was allowed and the amended plaint was taken on record and summons were issued against the Defendant who entered appearance on 30.09.2024 and filed Written Statement and an application under Order VII Rule 11 CPC which was withdrawn by learned Counsel for Defendant on 29.11.2024.
CASE OF THE DEFENDANT AS SET UP IN THE WRITTEN STATEMENT
8. Brief facts of the case as stated by the Defendant in the Written Statement are that:
a) The Plaintiff has not come to the court with clean hands as the Plaintiff concealed the material facts from this court.
b) Defendant had published advertisement for required machine/equipment and many companies had participated in bidding. Thereafter, selection of vendor contract agreement was made between AIIMS and Plaintiff.
c) Plaintiff did not comply with rules and regulations of agreement and Plaintiff did not fulfill installation in the period and Plaintiff misled the Defendant.
NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 6 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:23:04 +0530
d) Defendant has already paid full and final payment as per agreement but Plaintiff has demanded unnecessary interest from the Defendant whereas delay in installations occurred because of Plaintiff.
e) In entire contract agreement between AIIMS and Creddene, there is no provision of interest to be payable. Hence present plaint should be rejected.
f) The present plaint should be rejected in terms of Order VII Rule 11 CPC as the same is not only barred by law but also no cause of action has arisen in favour of the Plaintiff and against the Defendant as the Defendant has made full and final payment to the Plaintiff.
g) Defendant has denied that an agreement was formalized on 13 December, 2022 through a competitive bidding process on the platform provided by GEM on its website i.e. www.GeM.gov.in. It has been submitted that subsequently on 31.12.2022, contract number GEMC 511687770688493 was executed. As per Rule 149 of General Financial Rules 2017, Government of India, the Procurement of Goods and Services by Ministries or Departments would be mandatory for Goods or Services available on GeM. GEMC-511687770688493 contract order as referred was issued on 30.12.2022.
NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 7 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:23:11 +0530
h) As per condition No. 12 stipulated under buyer added bid specific terms and conditions in said GeMBid No.GEM/2022/B/2223187 dated 31.05.2022, the installation, commissioning, testing, configuration, training (if any - whichever is applicable as per scope of supply) was to be carried out by OEM / OEM certified resource or OEM authorized Reseller.
i) As per scope of supply condition No. 21 stipulated under buyer added bid specific terms and conditions in said GeM bid No. GEM/2022/B/2223187 dated 31.05.2022, the Scope of supply (Bid price to include all cost components) includes supply, installation testing, commissioning of Goods and Training of operators and providing Statutory Clearances required, if any,
j) As per said GeM bid No.GEM/2022/B/2223187 dated 31.05.2022, the delivery days are 30 (thirty).
k) The said GeM bid NoGEM/2022/B/2223187 dated 31.05.2022 is also governed by the General Terms and Conditions (GTC).
l) As per payment condition No.12, stipulated under General Terms and Conditions in said GeM bid No. GEM/2022/B/2223187 dated 31-05-2022, the payments shall be made to the seller in the manner below:
NEERA BHARIHOKE Digitally signed CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 8 of 41 by NEERA BHARIHOKE Date: 2025.08.18 16:23:18 +0530 In case of goods, 100% payment will be released within ten (10) days of issue of Consignee-Receipt-cum-Acceptance Certificate (CRAC) and on-line submission of bills unless otherwise specified in STC / ATC.
m) As per delivery period condition No. 14, stipulated under General Terms and Conditions in said GeM bid No.GEM/2022/B/2223187 dated 31.05.2022, the Seller shall indicate the quantity which can be supplied over the specified time period(s). The Seller would offer these details, which would constitute the part of the awarded Contract(s) in the GeM and would make a binding Contract between the Seller & the Buyer.
Any modification thereto shall be mutually agreed and incorporated in the Contract. This Delivery Period / Time shall be deemed to be essence of the Contract and delivery must be completed not later than such date(s).
n) By accepting all terms and conditions stipulated above said GeM bid No. GEM/2022/B/2223187 dated 31.05.2022 and its General Terms and Conditions, M/s Creddene Healthcare Pvt. Ltd participated in the said bid and got the contract through competition for supply, installation, commissioning, testing, configuration, training.
o) Accordingly, AIIMS, Mangalagiri vide GeM Contract No.GEMC-511687770688493 dated 30.12.2022 has awarded the NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 9 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:23:24 +0530 contract on GeM portal for supply, installation, commissioning, testing, configuration, training following quantity, price and delivery to be completed by 29.01.2023:
S. Item Description Ordered Unit Unit Price Price No. Quantity (INR) (inclusive of all duties and Taxes) Product Name: Humidifier for HFOT Brand: Taurus Brand Type: Unbranded i Catalogue Status: Catalogue not verified by OEM 40 No 58,240 23,29,600 Selling As: Reseller not Verified by OEM Category Name & Quadrant: BOQ (Q3) Model: T7 HNS Code: 9019 Product Name: Mountings for Holding Humidifier Brand: Indian Brand Type: Unbranded Catalogue Status: Catalogue not verified by OEM 40 No 11,800 4,72,2000 Selling As: Reseller not Verified by OEM ii Category Name & Quadrant: BOQ (Q3) Model: CRED001 HNS Code: 7326 Product Name: Nasal Cannula for HFOT Brand: Draeger Brand Type : Unbranded iii 200 No 3,360 6,72,000 Catalogue Status: Catalogue not verified by OEM No Selling As: Reseller not Verified by OEM Category Name & Quadrant: BOQ (Q3) Model: MP05511 HNS Code: 9019 Product Name: Disposable breathing circuit with inbuilt humidifier chamber for use of HFOT Brand: Draeger Brand Type: Unbranded NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 10 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:23:29 +0530 iv 150 No 14,160 21,24,000 Catalogue Status: Catalogue not verified by OEM Selling As: Reseller not Verified by OEM Category Name & Quadrant: BOQ (Q3) Model: MP05601 HNS Code: 8481 Product Name: Safety Value while use of HFOT Brand: Draeger Brand Type: Unbranded v Catalogue Status: Catalogue not verified by OEM 150 No 5,900 8,85,000 Selling As: Reseller not Verified by OEM Category Name & Quadrant: BOQ (Q3) Model: MP05507 HNS Code: 8481 Total 64,82,600 Sl. No. Consignee Item Qty. Delivery Deliver to Start after be completed by 1 Designation Humidifier for 40 30.12.22 29.01.23 EmailID: HFOT [email protected] Mountings for 40 30.12.22 29.01.23 Contact:9550-381709 Holding
- GSTIN37AAHAA4036G1D7
- Address: 4th Floor, Nursing College Humidifier Campus, All India Institute of Medical Nasal Cannula for 200 30.12.22 29.01.23 Sciences, Old TB Sanatorium Road, HFOT Mangalagiri, Guntur, Andhra Pradesh -
522503, India Disposable 150 30.12.22 29.01.23 breathing circuit with inbuilt humidifier chamber for use of HFOT Safety Valve 150 30.12.22 29.01.23 while use of HFOT
p) As per Goods Receipt and Inspection Report (GRIR) of AIMS Mangalagiri, said items were received on 11.02.2023, but installation was to be completed by Plaintiff. The NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 11 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:23:36 +0530 installation of Seven (07) humidifiers was pending and the demonstration of these was not done.
q) Vide e-mail dated 14.02.2023, it was brought to the notice of Plaintiff that Defendant received 40 (Forty Nos) Humidifiers and HFOT devices on 13.02.2023. The request for the installation as soon as possible (preferably 48 hours) for smooth functioning was made by the Defendant to Plaintiff
r) Vide e-mail dated 16.02.2023, it was again reminded to the Plaintiff that it had been 48 hours till then, but no one had contacted Defendant for installation Humidifiers and HFOT and to complete the installation process as soon as possible on urgent basis.
s) Again, vide e-mail dated 17.06.2023, it was informed to Plaintiff that as communicated, certain documentation for humidifiers which was acknowledged by Bhaskar Singh (Territory Manager-HCA, Draeger) and he had promised to give these documents in 07 working days.
t) Vide e-mail dated 26.06.2023, the following were again
informed to Plaintiff that as conveyed
in the previous email dated 17.06.2023 :
(i) Non installation and non-demonstration of the above-said humidifiers.
NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 12 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:23:42 +0530
(ii) Tender specifications clearly state - compatible breathing circuits with the ventilator. Since ICU ventilators deal with critically ill patients, any shortcomings in this regard can lead to catastrophic events.
(iii) In case of delay in installation and demonstration and non-submission of requested documents (three)and certificates despite repeated reminders, Institute may be forced to return the product.
u) Vide e-mail dated 08.07.2023, it was informed to Plaintiff to complete the installation of the humidifiers as soon as possible with demonstration. Document as submitted were not relevant and Defendant vide e-mail dated 17.06.2023 was advised so as to submit the required documents at the earliest. It was also intimated that failure of submission of the mentioned documents was affecting the procurement process of the humidifiers and patient care. This forced Defendant to reconsider other alternatives so that the patient care was not affected.
v) Vide e-mail dated 02.09.2023, Plaintiff was again informed that installation of 07 humidifiers was pending and demonstration is yet to be given and to submit the required documents at the earliest.
NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 13 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:23:49 +0530 w) Sh. Bhaskar Singh, Territory Manager-HCA M/s Draeger vide e-mail dated 05.09.2023 had confirmed that all 40 humidifiers had been installed out of which only 33 were being used and 07 were on standby. He also assured that if required he could share an undertaking for sole responsibility from Draeger.
x) Vide e-mail dated 05.09.2023, Defendant informed Sh. Bhaskar Singh, Territory Manager-HCA M/s Draeger in reference to visit of their engineer Mr. Kaushik that all 40 units are installed i.e. 33 nos. were installed on ICU Ventilators and 07 nos. were kept as standby. The provision of an undertaking on Draeger letterhead, stating that Draeger India would be responsible for installation, maintenance & application training during warranty period as per GEM Contract number GEMC- 511687770688493 dated 30.12.2022 was solicited.
y) Vide e-mail dated 05.09.2023 of Shri Bhaskar Singh, Territory Manager-HCA, M/s Draeger, submitted an undertaking from M/s Drager regarding taking responsibility for installation, maintenance & application training related to after sale service for all the 40 humidifiers (Make & Model:
Taurus T7).
z) Defendant vide e-mail dated 05.09.2023 shared installation report of all 40 humidifiers (33 installed on NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 14 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:23:56 +0530 ventilators and 07 on standby) to Sh. Bhaskar Singh, Territory Manager-HCA M/s Draeger. As per Installation report shared, installation of 7 humidifiers was pending and demonstration had not been done. Thus, Installation Certificate could not be issued.
aa) Vide e-mail dated 22.09.2023, Defendant informed Plaintiff to submit tax invoice on GeM portal so that payment can be processed.
bb) Vide e-mail dated 22.09.2023, Defendant requested for approval of extension on GeM portal for uploading of tax invoice.
cc) Vide e-mail dated 27.09.2023, Defendant requested Plaintiff to submit an E-way bill for the invoice raised against the contract order GEMC-511687770688493 to process the payment.
dd) Vide e-mail dated 27.09.2023, Plaintiff submitted an e-way bill.
ee) Due to pending of required documents and generation of CRAC (consignee receipt and acceptance certificate) on GeM Portal as well as non-installation of 07 (seven) nos. of humidifiers, the payment process was kept on hold. The CRAC could be generated only after submission of Invoice on GeM portal by Vendor. The invoice was generated by Plaintiff on 22.09.2023 NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 15 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:24:02 +0530 and subsequent to that the CRAC was generated on 29.09.2023 by the Defendant.
ff) Defendant communicated multiple times for the complete installation and demonstration of the pending humidifiers so as to facilitate the generation of CRAC and release of payment.
gg) Plaintiff made a claim of Rs.64,82,600/-. The payment of Rs.63,05,174/- was released to Plaintiff through PFMS portal by the Defendant after deducting a sum of Rs.64,826/- towards liquidated damage charges only for two weeks in accordance with bid terms and conditions and Rs.1,12,600/- (@2% of contract value) towards GST TDS as per Govt. of India norms. Vide letter No. AIIMS/MG/Admin/Procurement/06/2023-24/DLSA/42 dated 28.10.2023, the same was also intimated by the Defendant to the Plaintiff.
hh) Defendant followed the GeM T&C while releasing the payment. Defendant consented for mediation and hence paid the mediation amount of Rs.7,500/-. The payment receipt of Rs.7,500/- towards participation amount for the DSLSA mediation in respect of Defendant for case 1372/11/SE/MED/DLSA/2023 dated 20.11.2023 with Plaintiff was forwarded to DLSA, SE by mail dated 30.01.2024.
9. Defendant has prayed for dismissal of the present suit.
Digitally
signed by
NEERA
NEERA BHARIHOKE
BHARIHOKE Date:
2025.08.18
16:24:09
+0530
CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 16 of 41
ADMISSION / DENIAL OF DOCUMENTS
10. Plaintiff admitted seven documents of Defendant. The same were exhibited as Ex. D-1 to Ex. D-7. Plaintiff did not file Replication.
FRAMING OF ISSUES
11. Vide order dated 29.11.2024, on the pleadings of the parties, the following issues were framed :-
(1) Whether the Plaintiff is entitled to recovery of suit amount? OPP (2) Whether the Plaintiff is entitled to interest on the suit amount? If yes, at what rate and for which period? OPP (3) Cost.
(4) Relief.
PLAINTIFF'S EVIDENCE
12. On 08.01.2025, Plaintiff examined PW-1 Shri Tarun Sharma. He presented his evidence by way of affidavit vide Ex. PW-1/A. He reiterated the contents of the plaint and relied upon the following documents: -
(i) Certified copy of the Certificate of Incorporation is Ex. PW-1/1.
(ii) Original Board Resolution dated 04.12.2023 in my favour is Ex.
PW-1/2.
NEERA BHARIHOKE Digitally signed by NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 17 of 41 Date:
2025.08.18 16:24:16 +0530(iii) Copy of the Contract Number GEMC-511687770688493 executed between the Plaintiff and the Defendant is Ex. PW-1/3 (already exhibited as Ex. D-1).
(iv) Copy of the Mediation application dated 12.10.2023 is Ex. PW-1/4 (Collectively).
(v) Original Postal receipt alongwith the tracking report are Ex. PW-1/5 (Collectively).
(vi) Copy of the legal notice dated 17.08.2024 is Ex. PW-1/6 (Collectively).
(vii) Copy of Non-Starter Report dated 09.05.2024 is Ex. PW-1/7 (Collectively).
13. PW-1 was cross-examined by learned Counsel for Defendant on 18.01.2025, 01.02.2025 and 07.03.2025 and discharged. On the same day, Plaintiff's Evidence was closed.
DEFENDANT'S EVIDENCE
14. Defendant examined DW-1 Col Shashikanth Thumma on 30.05.2025. He presented his evidence by way of affidavit vide Ex. DW- 1/A. He reiterated the contents of the Written Statement and relied upon the following documents: -
i. Copy of the Letter of Authorization is Ex. DW-1/A. ii. Copy of the agreement as Ex. DW-1-A1/8 (Colly.) [already exhibited as Ex. D-1 (Colly.)] NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 18 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:24:22 +0530 iii. Copy of Original Equipment Manufacturer (OEM) as Ex. DW-1- A2/12 (Colly.) [already exhibited as Ex. D-2 (Colly.)] iv. Copy of Goods Receipt and Inspection Report (GRIR) as Ex. DW-
1-A3/1 [already exhibited as Ex. D-3] v. Copy of the Installation Report as Ex. DW-1-A4/2 (Colly).
[already exhibited as Ex. D-4 (Colly.)] vi. Copy of e-mail communication as Ex. DW-1/A5/8 (Colly.) [already exhibited as Ex. D-5] vii. Copy of e-mail communication as Ex. DW-1-A6/1.
viii. Copy of the office memorandum as Ex. DW-1-A7/1. [already exhibited as Ex. D-6] ix. Copy of the Sanction Order as Ex. DW-1-A8/1. [already exhibited as Ex. D-7].
15. DW-1 was cross-examined by learned Counsel for Plaintiff on 30.05.2025. On the same day, he was discharged and Defendant's Evidence was closed and the matter was listed for final arguments.
FINAL ARGUMENTS
16. Learned Counsel for Plaintiff has argued that the Plaintiff had installed all the humidifiers, 40 in number on 24.03.2023 and relied on installation/service report dated 24.03.2023 bearing sign and seal of Defendant. It was argued that Defendant did not pay the dues of the Plaintiff and that delay occurred in processing the bills of the Plaintiff on part of the Defendant and Plaintiff was compelled to initiate pre-
NEERA CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 19 of 41 BHARIHOKE Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:24:28 +0530 institution mediation against the Defendant and the Defendant made the payment to the Plaintiff but after deducting Rs.1,00,000/- on account of delay in installation of the humidifiers whereas the delay was on part of the Defendant in processing the payment of the Plaintiff. He submitted that therefore another round of pre-institution mediation was preferred by Plaintiff, but the Defendant did not participate though fees was paid by Defendant. Learned Counsel for Plaintiff referred to cross examination of the witness of Defendant and submitted that DW-1 has admitted about the date of installation of all the humidifiers by the Plaintiff on 24.03.2023 but the payment was made to the Plaintiff on 21.10.2023 after the receiving of notice of first round of pre litigation mediation. Learned Counsel for Plaintiff prayed for decreeing the suit.
17. On the other hand, learned Counsel for Defendant submitted that submissions made by learned Counsel for Plaintiff are incorrect and referred to the emails exchanged between the parties in support of the submission that 33 humidifiers were installed by the Plaintiff while the installation of 7 humidifiers was pending. He also argued that besides installation, the Plaintiff was required to complete the commissioning, testing, configuration and training in respect of these humidifiers and it was only after completion of all this that Plaintiff was entitled to receive the payment. Learned Counsel for Defendant relied on various provisions in the agreement between the parties and submitted that thus there was no delay on part of Defendant to make payment to Plaintiff and that Plaintiff is not entitled to any interest. Learned Counsel for Defendant submitted NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 20 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:24:35 +0530 that it had made all the payment which was due to the Plaintiff and prayed for dismissal of the present suit.
18. I have heard the rival submissions of the parties and perused the record very carefully.
FINDINGS
19. My issue-wise findings are given as under:-
Issue No.1: Whether the Plaintiff is entitled to recovery of suit amount?
The onus to prove this issue was placed on the Plaintiff.
20. Plaintiff has filed the present suit for recovery of Rs.4,74,763.80/- against the Defendant. The Plaintiff has submitted that a contract for supply and installation of 40 humidifiers dated 13.12.2022 was entered into between the parties through the GeM Portal and that the Defendant did not issue the installation report leading the Plaintiff to file application for pre-institution mediation. After filing the same, on receipt of notice of pre-institution mediation, the Defendant made the payment after deducting Rs.1,00,000/- on account of delay in installation compelling the Plaintiff to file another application for pre-institution mediation.
21. The Defendant has not denied the execution of the agreement between the parties but has stated that the date of the execution of the NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 21 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:24:41 +0530 same is dated 31.12.2022. The submission of the Defendant is found to be correct.
22. Plaintiff has stated that the Plaintiff installed all 40 humidifiers on 24.03.2023 but the installation report was retained by the Defendant and it failed to issue the same on time and because of the negligence of the Defendant, the payment of contract amount was not released on time and there was unexpected delay by the Defendant in releasing the same and that too after deduction of Rs.1,00,000/- on account of alleged delay on part of Plaintiff in installation of the humidifiers.
23. Plaintiff has relied on the cross-examination of DW-1 who stated that it was correct that all the 40 humidifiers were installed on 24.03.2023 and installation report was generated and acknowledged on the same date. However, it is noticed that in the same breath, DW-1 had volunteered that if these 40 humidifiers were installed on 24.03.2023, then the process of uploading the invoice and E-way bill in respect of these humidifiers should have been uploaded on the GeM portal by the Plaintiff to enable the generation of CRAC (Consignee Receipt and Acceptance Certificate) for facilitating the payment to the Plaintiff.
24. It is further noticed that DW-1 had stated that installation of the contracted equipment (humidifier) was completed on 05.09.2023. DW-1 was shown the installation report dated 24.03.2023, Ex. D-4 Which was issued by M/s Draeger. He submitted that as per installation report, 7 number of humidifiers were still pending and the demonstration was not NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 22 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:24:47 +0530 done. DW-1 stated that these reports had been acknowledged by Dr. Sunit Kumar Gupta working as Assistant Professor in AIIMS, Mangalgiri. He volunteered that on 02.09.2023, mail from AIIMS, Mangalgiri was sent to Plaintiff intimating their submission of the installation report of 33 humidifiers and also informing them of seven humidifiers installation report to be still pending.
25. It is correct that 2 reports for the same IO number i.e. 110/1112/11667 of 40 humidifiers are on record. DW-1 denied the suggestion that there is only one installation report and the other report which has been exhibited as Ex. D-4 is the copy of the report on page no.50 with 1 alteration i.e. "7 humidifiers installation is pending & demonstration has not been done."
26. The question was put to DW-1 whether any engineer was sent to the premises of the Defendant for checking the status of 40 humidifiers to which he answered yes but volunteered that he did not undertake the installation. 33 humidifiers were installed subsequently and 7 humidifiers were still pending for installation at that point of time. A question was put to DW-1 as to when the remaining 7 humidifiers were installed to which he answered that they were installed on 05.09.2023.
27. DW-1 stated that he did not recollect any installation reports and also stated that however an undertaking of the installation of all 40 humidifiers was submitted by M/s Draeger to the Defendant.
NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 23 of 41 Digitally signed by NEERA BHARIHOKE Date:
2025.08.18 16:24:54 +0530
28. In view of the aforequoted submissions of DW-1, the reliance on his statement by the Plaintiff that Defendant got the possession of the installation reports on 24.03.2023 and on the same day, these reports were acknowledged by Dr. Sunit Kumar Gupta working as Assistant Professor in AIIMS Mangalagiri does not establish the case of the Plaintiff that the Defendant did not issue the installation reports even after installation of all humidifiers on 24.03.2023 since the said statements have been made by DW-1 on the basis of document described as installation/service report,Ex.D-4 placed on record by the Defendant and has the name of Draeger on its top and not of Plaintiff. It is correct that the Defendant has filed 2 documents by the same description both bearing response date & time as 24.03.203. In one of them, the column of Customer Remark is blank and in the column of service performed, it is written "Installed the respiratory humidifier and it is working good condition" and in other identical document, in the column of Customer Remark, it is written as "7 humidifiers installation is pending and demonstration has not been done.". During the stage of admission denial of documents, the Plaintiff admitted this installation/ service report and not the one which has blank column of "Customer Remark" and it was this document which was exhibited as Ex. D-4.
29. This observation is supported by underlined portion of the cross examination of PW-1 in this paragraph. During his cross-examination, a question was put to PW-1 if he had installed all the items i.e. 40 machines with accessories to which he answered affirmatively and denied the suggestion that 40 machines with accessories were not installed but 33 NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 24 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:25:00 +0530 were installed. PW-1 volunteered that the Plaintiff had given the supply of 40 machines with accessories and had given installation as per its engineers, all 40 machines were installed despite claims made by the Defendant that 33 were installed. PW-1 further stated that he had sent his engineers for verification, but the engineers were denied access. PW-1 also volunteered that same 33 machines' installation report was given by Defendant in October 2023 wherein 33 machines installation was done by 24.03.2023 and seven machines installation report was not handed over till date by Defendant. PW-1 was shown Ex.D-4 and was asked if this installation report as submitted by Defendant was correct to which he answered affirmatively and volunteered that it is only for 33 machines as elaborated in his previous answer. Ex. D-4 has the remark that 7 humidifiers installation is pending and demonstration has not been done.
30. PW-1 denied the suggestion that as per goods, receipt and inspection report (GRIR of AIIMS), the said items were received on 11.02.2023 but installation was yet to be completed by the Plaintiff, the installation of seven machines was pending and demonstration of these were not done.
31. The question was put to PW-1 if Defendant had given regular notice/name, e-mails communication regarding the installation to which he answered as 'No' and volunteered that they were continuously in contact with the Defendant through mails regarding payments. In reply to those mails, they regularly marked undue documents required for release NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 25 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:25:06 +0530 of payment and that he sent his engineers voluntarily for discussion and requirements, if any, but engineers were denied entry.
32. At that stage, PW-1 was confronted with the e-mails exchanged between the parties, Ex. PW-1/DX-1 (Colly) and suggestion was given to him that in the said e-mails, the Plaintiff had admitted that it had not installed 7 machines and PW-1 denied the said suggestion.
33. A question was put to PW-1 as to why Plaintiff was demanding interest from Defendant to which he answered as:
"As per the contract, the delivery date was on 29.01.2023, wherein we had delivered on 11.02.2023. Installation of all equipments done on 24.03.2023. We have submitted PBG as per clause of the contract for amounting Rs.1,94,478/-. After asking for the payment, which was not paid for almost 8 months when we initiated court procedure through Mediation Cell, Payment released on 21.10.2023 just before the mediation for amounting Rs.63,82,600/- in against of Rs.64,82,600/-. For this delay of eight months, I am asking for the interest."
34. PW-1 admitted that the Defendant delayed the delivery of all equipment and accessories as per GeM contract and volunteered that Plaintiff had supplied the goods after 13 days of delivery date. Thereafter, the question was put to him as to when did the Plaintiff submit all the necessary documents on GeM Portal, PW-1 replied that Plaintiff had submitted all the documents after giving supplies and receiving receipts from the hospital in second week of February 2023. PW-1 denied the suggestion that the Defendant has not denied access to his NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 26 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:25:13 +0530 representative. He also denied the suggestion that in the e-mail dated 30.06.2023, he had wrongly stated that the access was denied to the representative of Plaintiff on 13.02.2023 and 30.06.2023.
35. On the next day of his cross examination, PW-1 was asked what was the brand of machines supplied to which he answered Taurus Healthcare and denied the suggestion that Plaintiff had supplied 3 brands of equipment i.e. Taurus, Draeger as well as some unbranded equipment. PW-1 was also asked if he had uploaded the original equipment manufacturer's certificate and he answered affirmatively and denied the suggestion that Plaintiff had not uploaded the necessary documents on the GeM Portal. On being put the question as to the date on which he uploaded e-way bill on GeM Portal, PW-1 stated that he did not remember the date and at that stage he was shown e-mail dated 27.09.2023 written by Plaintiff to the Defendant as a reply to their e-mail dated PW-1 was asked and he admitted the suggestion that he had submitted e-way bill on GeM Portal on 27.09.2023. Print out of said e-mail dated 27.09.2023 was exhibited as Ex. PW-1/DY. Thus the Defendant has proved that even till 27.09.2023, the Plaintiff had not uploaded the complete documents on GeM Portal which was a mandatory requirement for processing the payment of Plaintiff.
36. PW-1 admitted that the Defendant processed the bills of the Plaintiff within 20 days of uploading of the relevant documents by the Plaintiff on GeM Portal which was required as per clause 2.18 of GeM NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 27 of 41 Digitally signed by NEERA BHARIHOKE Date:
2025.08.18 16:25:20 +0530 Contract between the parties. However, he denied the suggestion that for the said reason, Defendant had no liability towards Plaintiff.
37. As against the reliance of the Plaintiff on the installation report dated 24.03.2023, Ex. D-4, the Defendant has relied on the terms and conditions of the contract number GEMC 511687770688493 as well as General Terms and Conditions in said GeM bid No. GEM/2022/B/2223187 dated 31-05-2022.
38. The General Terms and Conditions (GTC) and the GeMBid No.GEM/2022/B/2223187 dated 31.05.2022 (hereinafter referred to as 'Bid Document'), Ex. D-2 have been perused and relevant observations have been made below the provisions:-
As per condition No. 12 of Bid Document, the installation, commissioning, testing, configuration, training (if any - whichever is applicable as per scope of supply) was to be carried out by OEM / OEM certified resource or OEM authorized Reseller.
As per scope of supply of Bid Document, the Scope of supply (Bid price to include all cost components) includes supply, installation testing, commissioning of Goods and Training of operators and providing Statutory Clearances required, if any. Therefore, Plaintiff was required not only to install humidifiers but also ensure commissioning, testing, configuration, training in respect of humidifiers which was to be carried out by OEM / OEM certified resource or OEM authorized Reseller. Accordingly, even if Ex. D-4 is taken to be proof of installation of all 40 humidifiers, it was not complete till commissioning, testing, configuration, training in respect of humidifiers which was to be carried out by OEM / OEM certified resource or OEM authorized NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 28 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:25:27 +0530 Reseller.
As per the Bid Document, the delivery days are 30 (thirty).
The Bid Document is also governed by the General Terms and Conditions (hereinafter referred to as 'GTC').
As per payment condition No.12, stipulated under GTC in Bid Document, the payments shall be made to the seller as in case of goods, 100% payment will be released within ten (10) days of issue of Consignee-Receipt-cum-Acceptance Certificate (CRAC) and on- line submission of bills unless otherwise specified in STC / ATC.
As per delivery period condition No. 14, stipulated under GTC in said Bid Document, the Seller shall indicate the quantity which can be supplied over the specified time period(s). The Seller would offer these details, which would constitute the part of the awarded Contract(s) in the GeM and would make a binding Contract between the Seller & the Buyer. Any modification thereto shall be mutually agreed and incorporated in the Contract. This Delivery Period / Time shall be deemed to be essence of the Contract and delivery must be completed not later than such date(s).
39. By accepting all terms and conditions stipulated in Bid Document and its GTC, Plaintiff participated in the said bid and got the GeM Contract No. GEMC-511687770688493 dated 30.12.2022 (hereinafter referred to as "Contract") through competition for supply, installation, commissioning, testing, configuration, training.
40. Defendant thus vide Contract awarded the contract to the Plaintiff on GeM portal for supply, installation, commissioning, testing, configuration, training following quantity, price and delivery to be NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 29 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:25:34 +0530 completed by 29.01.2023. As per Goods Receipt and Inspection Report (GRIR) of AIMS Mangalagiri, said items were received on 11.02.2023, but installation was to be completed by Plaintiff. However, as per submission of Defendant, the installation of 7 humidifiers was pending and the demonstration of these was not done. The Defendant confronted PW-1, during his cross-examination, with the emails exchanged between the parties as well as emails sent by the Defendant to Bhaskar Singh, Territory Manager-HCA, Draeger, with copy marked to Plaintiff of some e-mails, Ex. PW-1/DX-1 (Colly.). These e-mails were filed by the Defendant with its written statement and the Plaintiff had admitted the same. The contents of these emails are reproduced in brief.
41. Vide e-mail dated 14.02.2023, it was brought to the notice of Plaintiff that Defendant received 40 (Forty Nos) Humidifiers and HFOT devices on 13.02.2023. The request for the installation as soon as possible (preferably 48 hours) for smooth functioning was made by the Defendant to Plaintiff.
42. Vide e-mail dated 16.02.2023, it was again reminded to the Plaintiff that it had been 48 hours till then, but no one had contacted Defendant for installation Humidifiers and HFOT and to complete the installation process as soon as possible on urgent basis.
43. Again, vide e-mail dated 17.06.2023, Plaintiff was informed to supply, as communicated in the previous e-mail, certain documentation i.e. compatibility certificate, warranty certificate and Triparty Agreement NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 30 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:25:41 +0530 from Draeger and authority letter from OEM in favour of Plaintiff for humidifiers which was acknowledged by Bhaskar Singh (Territory Manager-HCA, Draeger) and he had promised to give these documents in 07 working days. It was also written in the said e-mail that installation and demonstration of these humidifiers was pending and requested Plaintiff to follow up with these documents and installation.
44. The reply of Plaintiff to this e-mail of Defendant is on record which is dated 21.06.2023 where the Plaintiff referred to its inability to procure compatibility certificate, warranty certificate and Triparty Agreement from Draeger and wrote that it had uploaded authority letter from OEM in favour of Plaintiff at the time of bidding on GeM. But Plaintiff did not respond to request of Defendant for installation and demonstration of humidifiers which were stated by Defendant to be pending, nor did Plaintiff write anything in reply mail about request of Defendant for installation. The Plaintiff did not write that installation and demonstration of humidifiers had already been completed on 21.03.2023.
45. Vide e-mail dated 26.06.2023, the Plaintiff requested the Defendant to instruct its officials to clear its long pending payment to which the Defendant again wrote to the Plaintiff that as conveyed in the previous email dated 17.06.2023, the Plaintiff had not installed and had not given demonstration of the above-said humidifiers. It was also written by the Defendant that Tender specifications clearly state compatible breathing circuits with the ventilator and since ICU ventilators deal with critically ill patients, any NEERA CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 31 of 41 BHARIHOKE Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:25:48 +0530 shortcomings in this regard can lead to catastrophic events and that in case of delay in installation and demonstration and non- submission of requested documents (three)and certificates despite repeated reminders, Institute may be forced to return the product.
46. The Plaintiff sent a reply mail dated 30.06.2023 to e-mail dated 26.06.2023 of Defendant and sent Compatibility Certificate as an attachment and through same mail, Plaintiff requested Defendant to share the list and place where humidifiers had been allotted in AIIMS Mangalagiri to Mr. Chander Mohan Sahani, Sales and Service Engineer of Plaintiff so that he could access and do the needful. The contents of this reply demolish the case of the Plaintiff of having completed the installation of the humidifiers on 21.03.2023 as well as the volunteered statement of PW-1 during his cross-examination he voluntarily sent his Engineer for discussions and requirements, if any, since it was in the knowledge of PW-1 that Engineer was required to be sent by him for accessing the humidifiers and do the needful in respect of their installation and demonstration.
47. Vide e-mail dated 08.07.2023, it was again informed to Plaintiff to complete the installation of the humidifiers as soon as possible followed by demonstration by his company engineer. It was also informed to the Plaintiff that documents submitted were not relevant and to refer to the previous e-mail dated 17.06.2023 where Plaintiff was requested to submit the required documents at the earliest and list of documents required was reiterated in the e-mail dated 08.07.2023. Vide the same e-mail, NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 32 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:25:54 +0530 Defendant intimated that failure of submission of the mentioned documents was affecting the procurement process of the humidifiers and patient care and this might force Defendant to reconsider other alternatives so that the patient care was not affected.
48. Plaintiff sent its reply e-mail on 16.07.2023 where Plaintiff reiterated its inability to produce documents sought by the Defendant by stating that M/s Draeger is not a party to the Contract whereas Plaintiff has itself relied on installation Report which bears name of M/s Draeger on its top and not the name of Plaintiff. Besides submissions of the Plaintiff in respect of the documents sought by Defendant, the contents of e-mail of Plaintiff are being reproduced which establish beyond doubt that even till 16.07.2023, the humidifiers were not installed by the Plaintiff in terms of Contract awarded to the Plaintiff:
"We would also like to inform you that our engineer visited the hospital premises twice (on 30th June 2023 and 13th February 2023) where met Dr. Vamsidhar /Chamala, and your goodself but unfortunately, no one assisted and guided him during his visit.
We further request you for easy execution of the contract obligations and to ensure the successful installation of the equipment and provide a demonstration of its functioning, we kindly request you provide us with a suitable time slot and date for our engineer to visit your hospital premises. It would be greatly appreciated if you could share the contact details of the person who will be responsible for assisting our engineer during the installation process. This will help us coordinate effectively and ensure a seamless installation experience.
We sincerely apologize for any inconvenience caused by the misunderstanding. We are committed to ensuring a smooth installation process and providing you with the necessary support for patient care. Our team will proceed with the installation as soon NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 33 of 41 Digitally signed by NEERA BHARIHOKE Date:
2025.08.18 16:26:01 +0530 as possible. Additionally, we will arrange for a demo of the humidifiers functioning by one of our company engineers to showcase their features and operation. Please feel free to contact us if you have any further queries or require any additional assistance. We look forward to completing the installation and serving your needs."
49. This submission on the part of Plaintiff in its reply e-mail dated 16.07.2023 again establishes that its engineers were not denied access by the Defendant and installation and demonstration of humidifiers was still pending on 16.07.2023. During cross examination of PW-1, PW-1 was confronted with printout of e-mail dated 27.09.2023 written by Plaintiff to the Defendant and he admitted that according to the said reply mail, Plaintiff had submitted e-way bill on GeM Portal on 27.09.2023 and the said e-mail was exhibited as Ex. PW-1/DY.
50. During the stage of final arguments, learned Counsel for Plaintiff referred to an e-mail dated 02.09.2023 and he was directed to show the said e-mail on record. Learned Counsel for Plaintiff was asked as to why question of standby humidifiers was put to the witness of the Defendant to which he responded that learned Counsel for Defendant had put to PW-1 print out of e-mails running into 14 pages and out of the set, e-mail dated 27.09.2023 was put to the witness of Plaintiff. Since the complete set of the said e-mails was provided to learned Counsel for Plaintiff but not placed on record, complete set of 8 pages was taken on record. After consent of both sides, the complete e-mail conversation was taken on NEERA BHARIHOKE Digitally signed CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 34 of 41 by NEERA BHARIHOKE Date: 2025.08.18 16:26:08 +0530 record as Ex. PW-1/DY and it was duly recorded in the order dated 26.07.2025.
51. Vide e-mail dated 02.09.2023, Plaintiff was again informed that installation of 07 humidifiers was pending and demonstration is yet to be given and to submit the required documents at the earliest.
52. Sh. Bhaskar Singh, Territory Manager-HCA M/s Draeger vide e-mail dated 05.09.2023 had confirmed that all 40 humidifiers had been installed out of which only 33 were being used and 07 were on standby. He also assured that if required he could share an undertaking for sole responsibility from Draeger.
53. Vide e-mail dated 05.09.2023, Defendant informed Sh. Bhaskar Singh, Territory Manager-HCA M/s Draeger in reference to visit of their engineer Mr. Kaushik that all 40 units are installed i.e. 33 nos. were installed on ICU Ventilators and 07 nos. were kept as standby. The provision of an undertaking on Draeger letterhead, stating that Draeger India would be responsible for installation, maintenance & application training during warranty period as per GEM Contract number GEMC- 511687770688493 dated 30.12.2022 was solicited.
54. This e-mail shows that Engineer for installation was sent by M/s Draeger and also that Plaintiff has misled by stating that its Engineer was not provided access by the Defendant.
NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 35 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:26:15 +0530
55. Vide e-mail dated 05.09.2023 of Shri Bhaskar Singh, Territory Manager-HCA, M/s Draeger, submitted an undertaking from M/s Drager regarding taking responsibility for installation, maintenance & application training related to after sale service for all the 40 humidifiers (Make & Model: Taurus T7). Defendant vide e-mail dated 05.09.2023 shared installation report of all 40 humidifiers (33 installed on ventilators and 07 on standby) to Sh. Bhaskar Singh, Territory Manager-HCA M/s Draeger. As per Installation report shared, installation of 7 humidifiers was pending and demonstration had not been done. Thus, Installation Certificate could not be issued. This e-mail was not marked to the Plaintiff. However, the Plaintiff wrote an e-mail dated 20.09.2023 to the Defendant about this report which shows that Plaintiff and M/s Draeger were acting in tandem and Plaintiff was in active knowledge of whatever correspondence was going on between Defendant and M/s Draeger.
56. Vide e-mail dated 20.09.2023 written by Plaintiff to the Defendant, the Plaintiff stated that as per the recent communication of the Defendant, it had come to its attention that installation reports of 33 humidifiers had been issued while the installation report for the remaining 7 units was pending. It was also written that in its correspondence, the Defendant mentioned that the delay in issuing the installation reports for these 7 units was due to non- completion of installations and Plaintiff requested for clarification stating that its engineers had successfully installed and demonstrated all 40 humidifier units as per the requirements of the contract and request of Defendant for installation of seven additional humidifiers had raised questions and Plaintiff requested clarification on NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 36 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:26:22 +0530 whether the Defendant was requesting re-installation of these 7 units or if there are discrepancies in their initial installation which were not apparent during the initial setup. Plaintiff had also Requested for appointment for the installation and demonstration of the remaining 7 humidifiers on an urgent basis to ensure the smooth functioning of the equipment and to expedite the resolution of any pending installation issues. Besides that, the Plaintiff had written that as the installation of 33 humidifiers had been completed as per the terms of the contract, the Plaintiff had requested for initiating the payment process without further delay. The Plaintiff had also sought clarification in respect of the request of the documents.
57. The Plaintiff in this lengthy e-mail nowhere stated that it had completed the installation process of all the 40 humidifiers much earlier i.e. on 24.03.2023.
58. Vide e-mail dated 22.09.2023, Defendant informed Plaintiff to submit tax invoice on GeM portal so that payment can be processed.
59. Vide e-mail dated 22.09.2023, Defendant requested for approval of extension on GeM portal for uploading of tax invoice.
60. Vide e-mail dated 27.09.2023, Defendant requested Plaintiff to submit an E-way bill for the invoice raised against the contract order GEMC-511687770688493 to process the payment.
61. Vide e-mail dated 27.09.2023, Plaintiff submitted an e-way bill.
NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 37 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:26:29 +0530
62. Defendant has submitted that due to pending of required documents and generation of CRAC (consignee receipt and acceptance certificate) on GeM Portal as well as non-installation of 07 (seven) nos. of humidifiers, the payment process was kept on hold. The CRAC could be generated only after submission of Invoice on GeM portal by Vendor. The invoice was generated by Plaintiff on 22.09.2023 and subsequent to that the CRAC was generated on 29.09.2023 by the Defendant. Defendant has proved its submissions in view of observations made above.
63. Plaintiff was required under the Bid Document, GTC and the Contract to complete the commissioning, testing, configuration and training in respect of these humidifiers and it was only after completion of all this that Plaintiff was entitled to receive the payment. By the e-mail communications referred in para no. 41 to 61, Defendant has successfully proved that Defendant communicated multiple times for the complete installation and demonstration of the pending humidifiers so as to facilitate the generation of CRAC and release of payment and the Plaintiff caused delay in installation of humidifiers which was to be installed in terms of the Bid Document, GTC and the contract awarded to the Plaintiff.
64. During his cross examination, PW-1 admitted that the Defendant processed the bills of the Plaintiff within 20 days of uploading of the relevant documents by the Plaintiff on GeM Portal which was required as per clause 2.18 of GeM Contract between the parties. Therefore, there has NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 38 of 41 Digitally signed by NEERA BHARIHOKE Date: 2025.08.18 16:26:36 +0530 been no delay on the part of the Defendant to release the payment to the Plaintiff in terms of the Bid Document, GTC and the contract awarded to the Plaintiff.
65. Plaintiff made a claim of Rs.64,82,600/-. Defendant has submitted that payment of Rs.63,05,174/- was released to Plaintiff through PFMS portal by the Defendant after deducting a sum of Rs.64,826/- towards liquidated damage charges only for two weeks in accordance with bid terms and conditions and PW-1 has also admitted during his cross- examination that there was delay on part of Plaintiff in supplying the humidifiers. Sanction order dated 21.10.2023, Ex. D-7, proves that deduction of liquidated damages on account of delay was Rs.64,826/-. However, the Plaintiff has misled this court by saying that the Defendant had deducted Rs.1 Lakh for delay and has sought the refund of the deducted amount. Further, in view of own admission of PW-1 about the delay in his cross-examination that as per the contract, delivery date was 29.01.2023 whereas the Plaintiff delivered the humidifiers on 11.02.2023, deduction has been made by the Defendant in terms of contract between the parties and therefore, Defendant has proved that no ground is made out for refund of liquidated damages of Rs.64,826/-.
66. Defendant has deducted Rs.1,12,600/- (@2% of contract value) towards GST as per Govt. of India norms. The same is also intimated by the Defendant to the Plaintiff by Sanction letter dated 21.10.2023, Ex. D-
6. The said amount is also not liable to be refunded to the Plaintiff.
NEERA BHARIHOKE Digitally signed CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 39 of 41 by NEERA BHARIHOKE Date: 2025.08.18 16:26:44 +0530
67. Plaintiff has submitted that it installed the abovementioned goods on 24.03.2023 as per the contract but Defendant failed to issue installation reports on time and because of its own negligence the payment of contract amount was not released on time and it was unexpectedly delayed by the Defendant. Plaintiff has further submitted that it sent several intimations for release of payment, but the Defendant kept on denying the payment.
68. Plaintiff has claimed interest on the delayed payment as suit amount from the Defendant. However, as observed earlier, the delay in the release of payment is not attributable to the Defendant but to the Plaintiff in view of observations made above as well as proved by e-mail conversation in para 41 to para 61 , Ex. PW-1/DX-1 (Colly.) and Ex. PW-1/DY. Plaintiff failed miserably to prove that Plaintiff had installed humidifiers on 24.03.2023 in terms of Bid Document read with GTC and the Contract awarded to Plaintiff. Further, Plaintiff failed miserably to prove that the delay in processing its payment occurred on part of Defendant. Therefore, Issue No.1 is decided against the Plaintiff and in favour of Defendant and it is held that Plaintiff is not entitled to recovery of suit amount.
Issue No.2: Whether the Plaintiff is entitled to interest on the suit amount? If yes, at what rate and for which period?
The onus to prove this issue was placed on the Plaintiff.
69. In view of findings given on Issue No.1, Plaintiff is not entitled to any interest. Therefore, Issue no.2 is also decided against the Plaintiff and NEERA BHARIHOKE CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 40 of 41 Digitally signed by NEERA BHARIHOKE Date:
2025.08.18 16:26:50 +0530 in favour of Defendant and it is held that Plaintiff is not entitled to any interest on the suit amount.
RELIEF
70. In view of my findings given on Issue No.1 and 2, the suit of the Plaintiff is dismissed with no order as to costs.
71. Decree sheet be prepared accordingly.
File be consigned to record room after necessary compliance. NEERA
BHARIHOKE
Announced in the open Digitally signed
by NEERA
Court on 18.08.2025 BHARIHOKE
Date: 2025.08.18
(Dr. Neera Bharihoke) 16:26:59 +0530
District Judge (Commercial Court)-06
South East, Saket Courts, New Delhi
18.08.2025
Certified that this judgment contains 41 pages and each page bears my signatures.
Digitally (Dr. Neera Bharihoke)
signed by
NEERA District Judge (Commercial Court)-06
NEERA BHARIHOKE
BHARIHOKE Date: South East, Saket Courts, New Delhi
2025.08.18
16:27:05
+0530
18.08.2025
CS (COMM) No. 2935/2024 M/s Creddene Healthcare Vs. All India Institute of Medical Sciences Page 41 of 41