Tata Consultancy Services Limited v Disclosure and Barring Service

Tata Consultancy Services Limited v Disclosure and Barring Service

The court corrected the judgment to limit TCS's entitlement to delay damages to 12 days, not 98, due to internal inconsistency and contractual construction. TCS was not entitled to statutory interest under the 1998 Act for disputed invoices, as the contract ousted such entitlement and no qualifying debt arose. TCS was permitted to amend to claim VAT, but not statutory interest. TCS was awarded 20% of its costs, reflecting minimal net success unrelated to most litigation costs.

Parties
Claimant: Tata Consultancy Services Limited; Defendant: Disclosure and Barring Service
Jurisdiction
England and Wales
Judgment Date
08 January 2024
Procedural Posture
Commercial Contract Dispute / Post Judgment Consequential Matters
Outcome
Judgment corrected; TCS awarded limited delay damages, VAT permitted, statutory interest claim refused, TCS awarded 20% of costs, interim payment ordered.
Legal Topics
Interest on Debts, Delay Damages, Costs, Contractual Interpretation, VAT, Remedies
Contract Law Commercial Law Interest on Debts Delay Damages Costs Contractual Interpretation VAT Remedies

Case Brief

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Parties

Tata Consultancy Services Limited

Claimant

Disclosure and Barring Service

Defendant

Procedural Posture

Commercial Contract Dispute / Post Judgment Consequential Matters

Legal Issues

  1. 1 Correction of judgment for internal inconsistency in delay damages
  2. 2 Entitlement to interest under Late Payment of Commercial Debts (Interest) Act 1998
  3. 3 Whether contractual clauses oust statutory interest

Ratio Decidendi

The court corrected the judgment to limit TCS's entitlement to delay damages to 12 days, not 98, due to internal inconsistency and contractual construction. TCS was not entitled to statutory interest under the 1998 Act for disputed invoices, as the contract ousted such entitlement and no qualifying debt arose. TCS was permitted to amend to claim VAT, but not statutory interest. TCS was awarded 20% of its costs, reflecting minimal net success unrelated to most litigation costs.

Court Disposition

Judgment corrected; TCS awarded limited delay damages, VAT permitted, statutory interest claim refused, TCS awarded 20% of costs, interim payment ordered.

Orders

  • Correction of delay damages to 12 days (£50,279.60 manpower, £1,222,716.80 non-manpower)
  • Net sum payable by DBS to TCS: £3,682,024.40 plus applicable VAT