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1973 Supreme(SC) 55

SUPREME COURT OF INDIA
A. ALAGIRISWAMI, I.D. DUA AND C.A. VAIDIALINGAM, JJ.
Pannalal, Appellant
Versus
Dy. Commissioner, Bhandara and another, etc., Respondents.
Civil Appeals Nos. 1071-1073 of 1967, D/- 23-2-1973.

Headnote:

Civil Procedure Code,1908 – Order 41 Rule 33 - Contract Act – Section 70 -Contract - Claim for balance - Appellant filed three suits, Civil Suit for the work of additions and alterations to three hospitals, then in the State and now in the State of Maharashtra - He entered into three contracts in relation to three hospitals, then Deputy Commissioner of District - He was paid various amounts in respect of work done for these three hospitals and dispute having arisen in respect of appellant s claim for balance of the amounts due in respect of these three contracts, appellant filed three suits – Held, it is true, as learned Judges of High Court pointed out that real basis for a claim under Section 70 is not terms of contract but quantum of the benefit actually derived - In absence of any other material contract between parties provides a useful basis for calculating that benefit learned counsel appearing on behalf of appellant did not want any relief against defendants other than the State of Maharashtra in Appeals and the Municipal Committee - Amount mentioned by court earlier would have had to carry interest at the rate of 6 per cent from date of plaint but learned counsel appearing on behalf of appellant has stated that he would be satisfied with a decree - There will be decrees accordingly - These amounts are far less than what the appellant is entitled to as indicated and he would get his full costs in all the Courts - They would, of course carry interest at 6 per cent from this date till date of realisation - Appeal allowed.

Judgment

ALAGIRISWAMI, J. :- These three appeals have come to this Court a second time by way of a certificate granted by the High Court of Bombay. The appellant filed three suits, Civil Suit No. 1-B of 1948 for Rupees 12,000/-, Civil Suit No. 2-B of 1948 for Rs. 31,028/- and Civil Suit No. 3-B of 1948 for Rs. 21,381/- for the work of additions and alterations to three hospitals, Kunwar Tilak Singh Hospital at Gondia, Bai Gangabai Hospital at the same town and Twynam Hospital at Tumsar, all in Bhandara District, then in the State of Madhya Pradesh and now in the State of Maharashtra. In December 1943 he entered into three contracts in relation to the above three hospitals with Mr. Tiwari, the then Deputy Commissioner of Bhandara District. He was paid various amounts in respect of the work done for these three hospitals and dispute having arisen in respect of the appellant s claim for the balance of the amounts due in respect of these three contracts, the appellant filed the above three suits. In two of these suits he made the Government of Madhya Pradesh as well as the Deputy Commissioner parties. The Deputy Commissioner, Mr. Tiwari, was also made a party in his personal capacity. He also made the Dispensary Fund Committee another defendant in each of the suits and as the Committee was not a statutory body he impleaded all its members as parties. In respect of Bai Gangabai Hospital the State Government, the Deputy Commissioner, the Municipal Committee of Gondia, which owned the hospital, as also Mr. Tiwari in his personal capacity were made parties. The trial Court decreed the suits against the State Government alone. The amounts decreed were Rs. 8,214/- in C.S. No. 1-B, Rupees 19,298/- in C. S. 2-B and Rs. 12,765-15-0 in C. S. No. 3-B. These were to carry interest, past and future. The State Government took the matter on appeal to the High Court of Judicature at Nagpur. The appellant did not file any cross-objections in spite of the failure of the trial Court to pass decrees against the other defendants. By the time the appeals came up for hearing Bhandara District became a part of the State of Maharashtra. The High Court of Bombay allowed the appeals filed by the State. The High Court also declined to exercise its powers under Order 41, Rule 33 of the Code of Civil Procedure against the other defendants. On appeal this Court set aside the order of the High Court refusing to consider the claim against the other defendants under Order 41, Rule 33 and remanded the case back to the High Court. This Court, however, confirmed the judgment of the High Court as far as the dismissal of the suit against the State was concerned. The High Court again dismissed the suits and the matter has again come before this Court by way of leave granted by the High Court of Bombay. It appears that sinch then the State of Maharashtra has taken over the Kunwar Tilak Singh Hospital and the Twynam Hospital and, therefore, the only question to be decided in two of these three appeals is the liability of the State of Maharashtra for any sums that may be found due to the appellant in respect of these two hospitals. The Bai Gangabai Hospital is even now owned by the Municipal Committee, Gondia and its liability also is to be determined.

2. The exact status of the Dispensary Fund Committee is not very clear. It does not appear to be a statutory body nor does it appear to be a permanent body. It seems to be something of an ad hoc body appointed by the Deputy Commissioner and consisted of a number of officials and a few non-officials. The Deputy Commissioner himself was not a member of the body. It appears, however, as we would show later, that the Deputy Commissioner was acting on behalf of this body with the tacit approval of the Committee itself. The contracts were signed by the Deputy Commissioner as Deputy Commissioner but not on behalf of the State; nor did they say that they were on behalf of the Dispensary Fund Committee or the Municipal Committee. But i





















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