Tata Consultancy Services Ltd v Disclosure and Barring Service [2024] EWHC 2025 (TCC) (01 August 2024)

Tata Consultancy Services Ltd v Disclosure and Barring Service [2024] EWHC 2025 (TCC) (01 August 2024)

The judgment was corrected to limit TCS's entitlement to loss and expense for delay to 12 days after 7 September 2018, reducing the sums awarded. The contract validly limited statutory interest to undisputed sums, so TCS's application to amend its pleadings to claim interest under the Late Payment of Commercial Debts (Interest) Act 1998 was refused. The contract's remedy for late payment was a substantial remedy and not void under the Act.

Citation
[2024] EWHC 2025 (TCC)
Parties
Claimant: Tata Consultancy Services Limited; Defendant: Disclosure and Barring Service
Jurisdiction
England and Wales
Judgment Date
01 August 2024
Procedural Posture
Commercial/technology and Construction Court Claim / Post Judgment Consequential Matters
Outcome
Judgment corrected; application to amend pleadings to claim statutory interest refused.
Legal Topics
Correction of Judgment, Interest on Commercial Debts, Interpretation of Contract Terms, Remedies for Late Payment, Amendment of Pleadings
Contract Law Commercial Law Technology Law Correction of Judgment Interest on Commercial Debts Interpretation of Contract Terms Remedies for Late Payment Amendment of Pleadings

Case Brief

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Parties

Tata Consultancy Services Limited

Claimant

Disclosure and Barring Service

Defendant

Procedural Posture

Commercial/technology and Construction Court Claim / Post Judgment Consequential Matters

Legal Issues

  1. 1 Whether the judgment should be corrected for internal inconsistency in damages calculation
  2. 2 Whether the claimant is entitled to statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998
  3. 3 Whether the contract ousts or varies the statutory interest regime

Ratio Decidendi

The judgment was corrected to limit TCS's entitlement to loss and expense for delay to 12 days after 7 September 2018, reducing the sums awarded. The contract validly limited statutory interest to undisputed sums, so TCS's application to amend its pleadings to claim interest under the Late Payment of Commercial Debts (Interest) Act 1998 was refused. The contract's remedy for late payment was a substantial remedy and not void under the Act.

Court Disposition

Judgment corrected; application to amend pleadings to claim statutory interest refused.

Orders

  • Correction of damages awarded to TCS: Manpower costs reduced to £50,279.60; Non-manpower costs reduced to £1,222,716.80.
  • Net sum payable by DBS to TCS reduced to £3,682,024.40, subject to VAT.