Judgement

Consolidated Appeals (No. 65 of 1936) from a judgment and decree of the High Court (May 23 and July 3, 1934) varying a judgment and decree of the Additional Subordinate Judge at Alipore, 24 Parganas, Bengal (March 14, 1931).

The main questions for consideration in this consolidated appeal were whether or not certain contracts,

Law. Rep. 65 Ind. App. 66 ( 1937- 1938) Bengal Nagpur Railway C ompany, Limited V. Ruttanji Ramji 215

dated March 31, 1920, entered into by the predecessor in interest of the plaintiffs and relating to the construction of a portion of a railway for the appellant railway company, and containing (inter alia) the rates of payment, were abandoned by mutual consent of the parties, and, if abandoned, what were fair and reasonable rates to be paid for the items of work done, and whether any and what rate of interest, and for what period, should be paid on any balance found to be due for the work done, after crediting part payments. The suit was instituted on November 29, 1927, the work having been completed early in 1925. In particular the question in this appeal was whether the Court had authority to allow interest for the period prior to the institution