Running Bill (RA Bill) Not Cleared in Construction Project – Legal Remedies in India
This article is published by The Legal Warning India and written by Advocate Uday Singh.
In large construction, infrastructure and EPC projects, Running Account Bills (RA Bills) are the lifeline of sub-contractors, vendors and MSMEs. Labour wages, material purchases, machinery rent and GST compliance all depend on timely clearance of RA bills.
However, one of the most common disputes in India today is:
“RA Bill submitted and certified, but payment not released.”
Delays stretch for months with excuses like “client payment pending”, “head office approval awaited”, or “next billing cycle”. For contractors, such delays can cripple cash flow and operations.
This article explains what RA bill disputes are, why payments get stuck, and what legal remedies are available to recover RA bill payments in India.
What Is a Running Account (RA) Bill?
An RA Bill is an interim bill raised periodically during execution of a construction project. It reflects:
- Work completed up to a certain stage
- Measurements recorded and certified
- Payable amount as per contract rates
RA bills are meant to ensure smooth cash flow during project execution.
When Does an RA Bill Dispute Arise?
An RA bill dispute arises when:
- RA bill is submitted on time
- Measurements are taken or accepted
- Yet payment is delayed or withheld
This is one of the most frequent causes of contractor litigation in India.
Common Reasons Given for Non-Payment of RA Bills
- Client has not released funds to main contractor
- Internal finance or HO approval pending
- Alleged quality or measurement objections
- Cash flow issues of main contractor
- Intentional delay to pressure sub-contractor
Legally, back-to-back payment excuses cannot be used indefinitely to deny payment.
Is Written Contract Mandatory for RA Bill Recovery?
No. While a written contract helps, recovery is possible even without a detailed agreement.
Courts rely on:
- Work order / LOI / LOA
- Certified RA bills
- Measurement books (MB)
- Email or WhatsApp approvals
- Site photographs and progress reports
- Engineer or supervisor confirmations
Actual execution and acceptance of work is the strongest evidence.
First Legal Step – Sending a Legal Notice
The most effective initial step in RA bill disputes is issuing a legal notice.
A proper legal notice should:
- Refer to the project and contract
- Mention RA bill numbers and amounts
- State the period of delay
- Demand payment within a fixed timeline
- Intimate legal action on failure
Many RA bill disputes settle at the legal notice stage itself.
What If RA Bill Payment Is Still Not Released?
If payment is not released even after notice, legal remedies include:
1. Civil Suit for Recovery of Money
Claiming outstanding RA bill amounts along with interest and costs.
2. Commercial Court (High-Value Projects)
Large EPC and infrastructure projects fall under commercial dispute jurisdiction.
3. MSME Remedies (If Registered)
MSME-registered contractors may have additional statutory remedies for delayed payments.
How Courts Examine RA Bill Disputes
Courts typically examine:
- Whether work was actually executed
- Whether measurements were recorded
- Whether objections are genuine or afterthoughts
- Conduct of parties after bill submission
Courts do not permit arbitrary withholding of certified RA bills.
Common Mistakes Contractors Make
- Accepting endless verbal assurances
- Not documenting measurement acceptance
- Delaying legal notice
- Failing to preserve site records
How Contractors Can Protect Themselves in Future
- Ensure RA bills are acknowledged in writing
- Preserve measurement records and site photos
- Keep email/WhatsApp approvals safely
- Act legally at first sign of abnormal delay
Related Articles
- Sub Contractor Ka Paisa Atak Gaya? Legal Notice aur Court Solution
- Labour Thekedar Ka Bill Clear Nahi Ho Raha? Legal Rights aur Recovery Process
- MSME Vendor Payment Not Released by Large Company – Legal Remedies
Frequently Asked Questions (FAQs)
Q. Can RA bill payment be stopped due to client delay?
Temporary delay may occur, but indefinite withholding is legally challengeable.
Q. Is certification mandatory?
Even partial certification or acceptance strengthens the contractor’s case.
Q. How long does RA bill recovery take?
Depends on response, settlement and legal route adopted.
This article is for general legal information and awareness purposes only. It does not constitute legal advice or solicitation. Communication is purely informational, in compliance with Bar Council of India Rule 36.
