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Company withheld contractor fee of ₹3.14L for approved hours citing al


13-Sep-2026 (In Labour & Service Law)
Worked as IT contractor for a Hyderabad firm (fee: ₹1.85L/mo). June timesheet was approved, but payment due July 20 was withheld. In reaction, I temporarily removed code, but offered in writing to restore it. They refused, revoked access, and claim ₹3.14L (June + July prorated) is forfeited for project disruption. 1. Can they forfeit pay for approved hours? 2. My legal risk for code removal after their initial breach? 3. Fastest recovery in Telangana: Legal Notice/Order 37 CPC?
Answers (2)

Answer #1
875 votes
The approved June payment cannot ordinarily be forfeited merely for alleged disruption unless supported by the contract. Code removal may create legal/IT risk. Issue a legal notice first; use Order 37 CPC only if the written contract supports a summary claim.
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Advocate Ravindra Anjaneyulu

Adv. Ravindra Anjaneyulu

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Answer #2
628 votes
If your June timesheet was approved, the agreed payment generally cannot be treated as automatically forfeited merely because of a subsequent dispute. However, removing or withholding code access may create contractual and legal issues depending on the agreement and circumstances. For recovery, a legal notice is usually the first practical step; the appropriate court procedure depends on the contract and evidence. Please share the contract and payment terms for a precise view.
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Advocate Mrudhula Jahnavi

Adv. Mrudhula Jahnavi

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