SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1979 Supreme(SC) 94

SUPREME COURT OF INDIA
R.S. SARKARIA AND O. CHINNAPPA REDDY, JJ.
State of Rajasthan, Appellant
Versus
Raghubir Singh and others, Respondents.
Civil Appeal No. 2008 of 1969, D/- 5-2-1979.
Advocates appeared
Mr. S. M. Jain, Advocate, for Appellant; M/s. B. D. Sharma and Ramesh Chandra Maheshwari, Advocates, for Respondents.

Advocates:
B.D.SHARMA, RAMESH CHANDRA MAHESHVAREE, S.M.Jain

Headnote:

Constitution of India, 1950 – Article 133Interest Act, 1839 – Contractual Obligations – Payment of Work Done – State of Rajasthan, defendant in Civil Suit in Court of Senior Civil Judge, is appellant in this appeal filed pursuant to a certificate granted under Article 133 (1) (a) of Constitution of India – Plaintiff respondent took a building work on contract from erstwhile Government of State of Udaipur. – He completed work – Despite demands and notices issued by plaintiff a considerable amount due to him remained unpaid. – He, therefore, filed suit out of which appeal arises to recover a sum together with interest at rate of 12%. – Suit was contested by State of Rajasthan. – An interim decree for a sum of Rs. 66,517 was passed. – After full trial a decree for Rs. 1,67,619 was passed – Decree also awarded interest at rate of 41/2 % on amount decreed from date of suit till date of realisation. – Plaintiff and defendant preferred appeals to High Court to Rajasthan. – High Court reduced decretal amount by a sum of Rs. 9,991. – High Court, however, held that plaintiff was entitled to interest from 1st January, 1951, and not merely from date of suit. – High Court also enhanced rate of interest pendente lite from 4 1/2% to 6 per cent. – High Court having varied decree of trial Court, State of Rajasthan sought and obtained a certificate under Article 133 (1) (a) of Constitution and has filed this appeal. – Held, SC pointed out that interest could not be awarded by way of damages. – SC also noticed that an Arbitrator was not a Court within the meaning of Interest Act. – No question arose before SC whether interest could not be awarded under Interest Act merely because notice demanding payment mentioned that plaintiff had suffered loss of interest also. – Condition prescribed by Interest Act that such demand shall give notice to debtor that interest shall be claimed is fulfilled if interest is claimed, notwithstanding the fact that notice of demand explains that loss by way of interest has been suffered. – To take any other view would be to over-technical in construction of pleadings, including notices preceding action. – Court must notice here an argument advanced by counsel for appellant that contract prohibited the award of interest – He relied upon following sentence occurring in paragraph 16 of Contract – Neither earnest money deposit nor withheld amount shall bear any interest. – This sentence far from supporting case of appellant appears to support the case of the plaintiff. – Reference to "the withheld amounts" is to amounts representing five per cent of running bills which are required to be withheld at time of payment of running bills. – Provision that contractor is not entitled to interest on these withheld amounts appears to imply that interest is claimable on other amounts due to contractor. – Appeal Dismissed

Judgment

CHINNAPPA REDDY, J.:- The State of Rajasthan, defendant in Civil Suit No. 9 of 1963 in the Court of the Senior Civil Judge, Udaipur, is the appellant in this appeal filed pursuant to a certificate granted under Article 133 (1) (a) of the Constitution of India (as it stood prior to the 30th amendment). The plaintiff respondent took a building work on contract from the erstwhile Government of the State of Udaipur. He completed the work on 6th June, 1950. Despite demands and notices issued by the plaintiff a considerable amount due to him remained unpaid. He, therefore, filed the suit out of which the appeal arises to recover a sum of Rs. 5,19,458/11/- together with interest at the rate of 12%. The suit was contested by the State of Rajasthan. An interim decree for a sum of Rs. 66,517 was passed on 7th November, 1955. After full trial a decree for Rs. 1,67,619 (including the sum of Rupees 66,517 for which a preliminary decree had already been passed) was passed on 11-6-1958/30-6-1958. The decree also awarded interest at the rate of 41/2 % on the amount decreed from the date of suit till the date of realisation. The plaintiff and the defendant preferred appeals to the High Court to Rajasthan. The High Court reduced the decretal amount by a sum of Rs. 9,991. The High Court, however, held that the plaintiff was entitled to interest from 1st January, 1951, and not merely from the date of suit. The High Court also enhanced the rate of interest pendente lite from 4 1/2% to 6 per cent. The High Court having varied the decree of the trial Court, the State of Rajasthan sought and obtained a certificate under Article 133 (1) (a) of the Constitution and has filed this appeal.

2. The controversy in the High Court related primarily to (i) conveyance and lift charges; (ii) alleged double benefit in regard to bond-stone, lintels and sills; (iii) use of Jodhpur slabs and their high cost; (iv) charge for C. P. Teak wood at the same rates a for Burma Teak. In regard to conveyance and lift charges the High Court pointed out that no question was raised in the Memorandum of grounds of appeal and there was, therefore, no justification for permitting the learned counsel for the State to assail the finding of the trial Court relating to those charges. We do not see any reason either why the learned counsel should be permitted to agitate this question in this appeal. Regarding double-charge for bond-stone, lintels and sills, the complaint of the appellant was that while separate payment was being made for them, they had also been included in the measurements of the walls in which they happened to be fixed. From the office circular issued by the Chief Engineer of the Public Works Department of the United State of Rajasthan on 12th July, 1948, it appears that it was the practice up till then to allow payment for bond-stones, lintels and sills separately without deducting their cubic contents from the general wall masonry. This had always been the practice and this was never objected to by the Accountant General. In view of the practice obtaining till then it could not be said that the contractor had wrongfully claimed double payment for bond-stones, lintels and sills. The use of Jodhpur slabs was not questioned in the written statement. All that was said was that the rate was high but at the trial there was no evidence worth the name, as observed by the High Court to show that the charge was excessive. Again there was no objection to the use of C. P. Teak Wood instead of Burma Teak Wood as the latter was not available. According to the letter of the Superintending Engineer dated 6th February, 1950, where Burma teak wood was not available and C. P. teak wood was used, the rate specified for Burma teak wood should be taken for C. P. teak wood. It could not, therefore, be said that the contractor had charged more than what he should have for C. P. teak wood.

3. The last question which was argued before us by Shri Jain, learned counsel for the State of















Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top