K.JAYACHANDRA REDDY, K.RAMASWAMY
Durga Ram Prasad – Appellant
Versus
Govt. of A. P. – Respondent
ORDER
1. These appeals by special leave arise from the judgment of the Division Bench of the Andhra Pradesh High Court in Memo of Cross-Objection in CMA No. 191 of 1975 dated 23-4-1975. The appellant had entered into a contract on 16-3-1965 to construct foodgrains godown at Karimnagar. In execution thereof, a dispute had arisen whether the appellant had executed the work as per the contract and is entitled to certain sums of money withheld by the engineer and also to the interest payable thereon at 12% etc. The dispute has been referred to the Arbitrator, a retired Chief Engineer, who in his Award dated 12-4-1972 awarded a sum of Rs. 27,776 with interest at 12% on the amounts wrongfully withheld by the engineer. We are concerned in these appeals appeals only with the entitlement of interest on the amounts withheld by the engineer. The Division Bench concluded, while negativing the claim for interest, thus :
"We are, however, inclined to agree with the first ground given by the Court below in negativing the claim for interest. Under clause 69 of MDSS which has to be treated as part of the contract, it is provided nor shall the contractor be entitled to interest upon any guarantee fu
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.