2016 Supreme(AP) 158
IN THE HIGH COURT OF JUDICATURE AT HYDERABAD
R. Kantha Rao, J.
Allam Subbarayudu - Appellant
Versus
State of A.P. - Respondent
Appeal Suit No. 933 of 2008
Decided On : 04-02-2016
For the Appellant : P. Vinayaka Swamy
For the Respondent: Govt. Pleader
Headnote:
Civil Law – Contract and Specific Relief – Agreement – Plaintiff is a civil contractor he entered into an agreement with 1st defendant in relation to work of formation of Neelapuram distributory, Gudipadu distributory and Gollapalli distributory branching from Chennamukkapally regulator – It was stipulated in agreement that work should be completed by work order was issued by 2nd defendant – Plaintiff undertook work in Neelapuram distributory up to a length of one kilometre in the Government land – Work of other distributories was not taken up due to non-availability of site – It is version of plaintiff that on the belief that entire site would be provided by defendants within a reasonable time, he mobilised men and machinery to commence work – He could not complete work within stipulated time as defendants failed to provide site without any obstruction and there was obstruction from persons in possession of assigned lands through which work has to be carried on – There was lot of correspondence between plaintiff and defendants in this regard – Plaintiff executed work to some extent in allotted site and the defendants released bill for an amount defendants recovered an amount towards value of the cement – Held, nature of the contract in the instant case is altogether different. As already said, the plaintiff was well aware of the fact on the date of entering into agreement that some delay would occasion in handing over the remaining land to him. If the land was not handed over to him within a reasonable time, he had an option to withdraw from the contract as provided under Clause 58 of the A.P. Standard Specifications – Plaintiff did not specifically plead as to how and to what extent, he suffered loss on account of the termination of contract by defendants – He did not mention the names of persons who obstructed him while executing work in Government site allotted to him – He merely stated that some persons in possession of assigned lands caused obstruction – In reply by defendants, in course of correspondence, they have specifically stated that there was no such obstruction – On mere ground that entire site was not handed over to plaintiff, in absence of any evidence justifying award of damages, it is not possible to pass any such decree in favour of the plaintiff towards loss of profit – Moreover fact that plaintiff did not even complete work in Government land which was allotted to him, disentitles him from claiming any damages – Appeal is dismissed. (Paras 19, 20 and 21)
1. This appeal arises out of a judgment and decree dated 17-11-2008 in O.S. No. 1 of 2005 passed by the Court of II Additional District Judge, Proddatur, Kadapa district. The unsuccessful plaintiff is the appellant.
2. In this judgment, for the sake of convenience, the parties will be referred as the plaintiff and the defendants.
3. The plaintiff is a civil contractor. He entered into an agreement with the 1st defendant on 01-01-1996 in relation to the work of formation of Neelapuram distributory, Gudipadu distributory and Gollapalli distributory branching from Chennamukkapally regulator. It was stipulated in the agreement that the work should be completed by 30-6-1996. The work order was issued by the 2nd defendant on 31-01-1996.
The plaintiff undertook the work in Neelapuram distributory up to a length of one kilometre in the Government land. The work of the other distributories was not taken up due to non-availability of the site.
It is the version of the plaintiff that on the belief that the entire site would be provided by the defendants within a reasonable time, he mobilised men and machinery to commence the work. He could not complete the work within the stipulated time as the defendants failed to provide the site without any obstruction and there was obstruction from the persons in possession of the assigned lands through which the work has to be carried on. There was lot of correspondence between the plaintiff and the defendants in this regard. The plaintiff executed the work to some extent in the allotted site and the defendants released the bill for an amount of Rs.10,87,398/-. The defendants recovered an amount of Rs.1,76,963/- towards the value of the cement. Under these circumstances, the plaintiff filed the suit before the trial Court praying for the following reliefs:
(a) directing the defendants to pay plaintiff the suit amount of Rs.22,94,499/- together with subsequent interest at 18% per annum on the principal amount of Rs.15,24,584/- from the date of the suit till payment.
(b) directing the defendants to pay plaintiff costs of the suit, and
(c) granting such other and further reliefs as may appear just and necessary in the circumstances of the case.
4. Before the trial Court, it was contended by the defendants in their written statement as follows:
(a) The plaintiff started the work knowing the consequences about the assurances of the department to the assigned land owners. Clause 58 of the Andhra Pradesh Standard Specifications enables the contractors to withdraw if the work is delayed for more than two months. But the plaintiff, who knew fully well about the difficulties in allotting the land and who was fully aware of the nature of the contract, did not withdraw from the work despite having recourse to Clause 58 of the A.P. Standard Specifications. The fact that the land owners have obstructed the plaintiff is denied by the defendants. The plaintiff did not complete the work in the Government land also within the stipulated period. He completed the work to a tune of Rs.9,85,679/- only by July, 1996. The time of the contract was extended up to 30-9-1996 on the request of the plaintiff. An amount of Rs.1,000/- was forfeited as the plaintiff failed to maintain the progress of the work. Without even executing the work in the Government land which was allotted to him within the stipulated time, the plaintiff is not entitled to claim damages on the ground that the defendants committed breach of contract. The plaintiff lifted his camp and withdrew all his labour, he did not sustain any loss. The plaintiff was paid an amount of Rs.15,041/- after recovering the cost of the cement and taxes, but the plaintiff has not returned the unused cement. However, the defendants submitted that they are ready to make payment for return of the unused cement.
5. Basing on the above pleadings, the trial Court framed the following issues:
(1) Whether the plaintiff is entitled to suit amount as prayed for ?
(2) To what relief ?
6. On