Legal Question in Consumer Law in India

One gas supplier has agreement to suply gas. The validity of the contact is 5 years. There is a clause in the agreement for minimum monthly lifting or pay clause. The supplier will charge 40% of the difference of contract supply and actual supply taken by the buyer. Supplier has to raise bill for Such recovery on quarterly basis and the buyer has to make payment of such bill within 30 days of the bill.
The supplier did not raise any bill for short supply during the last 3 year despite of short lifting of contractual quantity.
The contact can be terminated after giving 3 months notice after 3 years frojm the date of contact. Now the 3 years period is over and the buyer want to terminate the contract as he has cheaper source else where.
The supplier is treating to raise the bill for the short lifting by the buyer durng the last 3 years if the contract is terminated.
IS the supplier justified in raising the issue and treating to raise for the last 3 years when the buyer intent to terminate the contact.

Asked on 3/23/11, 4:15 am

Santosh Goswami,Advocate sure shot legal

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As the agreement says that the bill can be raised on quarterly basis, supplier is justified.

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Answered on 8/04/11, 4:27 am

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