Prompt Payment of Accounts Act, 1997

Amounts payable in case of dispute.

7.—(1) Where there is a dispute between a purchaser and supplier as to the amount due and payable under a contract for the supply of goods or services, the purchaser shall not be liable to pay an interest penalty in respect of any of those goods or services which—

(a) the purchaser and supplier agree, or

(b) a court or arbitrator before which or whom the dispute is brought for determination or settlement decides,

are genuinely in dispute and the purchaser has, before the prescribed payment date, paid for the goods or services, if any, agreed or determined not to be in dispute.

(2) For the purposes of subsection (1), goods or services which are complementary and designed to be used together with goods or services which are in dispute shall also be taken to be in dispute.