Common use of Penalty clauses for default of payments Clause in Contracts

Penalty clauses for default of payments. i. In case the private partner fails to pay the assessed rent to the RKS of the concerned hospital on or before 5th of each calendar month as mentioned under Article 2 clause 2.4 d), interest @ 1% per month on the due rent amount will be imposed for each 15 days delay or part thereof subject to a maximum allowable extension period of 3 months from last due date of payment of such rent. All dues along with applicable interest have to be cleared within the allowable limit of 3 months beyond which relevant procedure for termination of contract and floating of e-tender for selection of new private partners will be initiated by the Hospital Authority/Department of Health & Family welfare. Provided, such penalty clause shall be applicable till the date of decommissioning of the unit and handover of site under possession of the private partner to the hospital authority. ii. If the private partner fails to pay the electricity bills within the stipulated time of 15 days from the date of raising of the bills by concerned hospitals as per clause 2.4 i under Article 2 , interest @ 1% per month on the due Electricity xxxx amount will be imposed for each 15 days delay or part thereof subject to a maximum allowable extension period of 3 months from last due date of payment of such rent. All dues along with applicable interest have to be cleared within the allowable limit of 3 months beyond which relevant procedure for termination of contract and floating of e-tender for selection of new private partners will be initiated by the Hospital Authority/Department of Health & Family welfare. Provided, such penalty clause shall be applicable till the date of decommissioning of the unit and handover of site under possession of the private partner to the hospital authority.

Appears in 4 contracts

Samples: Distribution Agreement, Distribution Agreement, Distribution Agreement

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Penalty clauses for default of payments. i. In case the private partner fails to pay the assessed rent to the RKS of the concerned hospital on or before 5th of each calendar month as mentioned under Article 2 clause 2.4 d), interest @ 1% per month on the due rent amount will be imposed for each 15 days delay or part thereof subject to a maximum allowable extension period of 3 months from last due date of payment of such rent. All dues along with applicable interest have to be cleared within the allowable limit of 3 months beyond which relevant procedure for termination of contract and floating of e-tender for selection of new private partners will be initiated by the Hospital Authority/Department of Health & Family welfare. Provided, such penalty clause shall be applicable till the date of decommissioning of the unit and handover of site under possession of the private partner to the hospital authority. ii. If the private partner fails to pay the electricity bills within the stipulated time of 15 days from the date of raising of the bills by concerned hospitals as per clause 2.4 i under Article 2 , interest @ 1% per month on the due Electricity xxxx bill amount will be imposed for each 15 days delay or part thereof subject to a maximum allowable extension period of 3 months from last due date of payment of such rent. All dues along with applicable interest have to be cleared within the allowable limit of 3 months beyond which relevant procedure for termination of contract and floating of e-tender for selection of new private partners will be initiated by the Hospital Authority/Department of Health & Family welfare. Provided, such penalty clause shall be applicable till the date of decommissioning of the unit and handover of site under possession of the private partner to the hospital authority.

Appears in 1 contract

Samples: Distribution Agreement

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