Courts: it is impossible to collect penalties under the state contract if unrealistic terms of its execution are established
The customer has established in the state contract terms of construction and installation works for a total duration of five months. The contractor performed the work with a significant delay. The customer appealed to the court to collect penalties.
Forensic experts concluded that the time allotted to the contractor did not comply with the construction standards, rules and construction project.
The court of first instance decided that there are no grounds for collecting penalties. The provisions of the contract on the terms of its execution were found unfair and invalid. At the same time, the contract was not recognized as not concluded, since the obligations under it were fully fulfilled.
The subsequent instance has upheld this position.
Document: Regulation AC East-Siberian district from 26.07.2018 in case N A58-1850/2017