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1979 Supreme(SC) 46

SUPREME COURT OF INDIA
R.S. SARKARIA AND O. CHINNAPPA REDDY, JJ.
Union of India, Appellant
Versus
Surjit Singh Atwal, Respondent.
Civil Appeal No. 2053 of 1969, D/- 18-1-1979.
Advocates appeared
Mr. R. P. Bhatt, Sr. Advocate (M/s. E. C. Agarwal and Girish Chandra Advocates with him), for Appellant; Mr. H. B. Datar, Sr. Advocate, (Mr. Ashok Grover, Advocate with him), for Respondent.

Advocates:
ASHOK GROVER, E.C.AGARWAL, GIRISH CHANDRA, H.B.DATAR, R.P.BHATT

Headnote:WHERE LEGALITY OR SUFFICIENCY IN LAW OF CONTRACT IS ASSAILED -SCOPE AND APPLICABILITY

       -it must be specifically alleged – Union of India v. Surjit Singh, AIR 1979 SC 1701. Where merely the factum of the contract is denied without alleging its unenforceability in law, the party is bound by the pleading and is precluded from raising the legality or validity of the contract - Kalyanpur Lime Works v. State of Bihar, AIR 1954 SC 165; Firm Chitpur Mal Ram Dayal v. Union of India, 1970 SCD 341; Union of India v. Surjit Singh, AIR 1979 SC 1701. Where the contract on the face of it is illegal, the Court may refuse to enforce it even though the parties have not raised objections in the pleadings - Surasaibalini v. Phanindra Mohan, AIR 1965 SC 1365.

       -this rule prescribes that the defendant must raise by his pleading all matters which show the suit not maintainable or that the transaction is either void or voidable in point of law.

Judgment

CHINNAPPA REDDY , J.:- Not content with raising a false plea, the appellant, Union of India, has preferred this appeal on a technical ground. The respondent-plaintiff undertook the construction of a hard Runway, taxi tracks and dispersal roads at Dalbhumghar Aerodrome. There was a formal written agreement between the parties (Agreement No. A-VII/96 of 1944-45). The respondent completed the work in 1945. The agreement provided for the work to be done "with stone at site", As no stone was available at the site, stone had to be obtained by blasting a rock in a Hillock. The rates stipulated in the agreement were on the basis that stone was available at site and not on the basis that stone had to be obtained by blasting rock. Some of the rates, therefore, required revision. There was a conference between the parties in November, 1947. On the side of the Government the Superintending Engineer, the Executive Engineer and the Deputy Accountant General were present. In respect of fourteen items of work the old rates were not altered. In respect of ten items of work only the rates were altered. Out of these ten items rates were substantially increased for nine items but slightly decreased for one item. The rates agreed between the parties at the conference were the very rates which had been previously fixed by a Government Engineer named Ramani Roy and suggested to the plaintiff by the Superintending Engineer for his acceptance. The plaintiff initially objected to the rates but withdrew his objections at the conference. It was agreed that the total amount of the final bill prepared in accordance with the agreed rates, less a sum of Rs. 50,000/-, should be paid forthwith and the balance of Rupees 50,000/- should be paid two weeks thereafter. As agreed the amount of the final bill, less Rs. 50,000/-, was paid but not the sum of Rs. 50,000/-. The sum of Rs. 50,000/- was not paid despite repeated demands by the plaintiff. The plaintiff therefore, filed suit No. 531 of 1951 on the original side of the High Court of Calcutta on 24th January, 1951 to recover the sum of Rs. 50,000/- together with interest.

2. In the plaint, as filed originally, the plaintiff stated that it was agreed that the work should be done by the plaintiff on the terms and conditions mentioned in certain letters that passed between the parties. No reference to the written agreement was initially made in the plaint but by a later amendment reference was also made to the agreement No. A-VII/96. The plaintiff further stated in the plaint that after the completion of the work there was a conference in November, 1947 at Calcutta and an agreement was arrived at between the parties regarding the rates at which the plaintiff was to be paid for the work executed by him. He claimed that in accordance with the terms of the agreement arrived at in November, 1947, he had yet to be paid a sum of Rs. 50,000/-

3. As we said earlier, the suit was filed on 24th January, 1951. The defendant. Union of India, filed a written statement on 1st February, 1956 five years after the filing of the suit. The contract for the execution of the work was admitted. The completion of the work was admitted. The conference alleged by the plaintiff to have been held in November 1947 was denied. The agreement said to have been arrived at the conference was also denied. These denials have been bound to be false by the Courts below and the learned Counsel for the appellant had to admit before us that the denial was unfortunate. It is a matter not merely of surprise but of shock to us that such a blatant false plea should have been raised by the Government in solemn proceedings before a Court of law. Far from setting an example as an ideal litigant, we notice that such false and untenable pleas are often raised on behalf of the Government. This is a matter which needs looking into by the authorities that the concerned with it and we earnestly hope that some suitable remedial action will be taken to avoid su




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