Missed Contract Deadline Due to Employee Health Issues: How Should I Address the Payment Hold?

I have entered into a works order contract and completed it, but I did not finish the work within the specified time period. As a result, the party has stopped my payment. The actual delay in the work was due to my employee's health problem. The party now requires a letter from me regarding the delay.

You have not provided sufficient information on the contract. What was the contract? What were the General Conditions of Contract (GCC)? Did the owner suffer any losses due to your deficiency in services? Were the damages clearly defined in the GCC? If the payment has been stopped for the sake of it, then it is illegal under the provisions of the Indian Contract Act, 1872.

As far as the letter for delay is concerned, you can provide that anyway. Find out after submitting the letter if they are ready to release the payment.

Ok...

Regards,
Dinesh V Divekar