The main legal point established in the judgment is that the plaintiff's entitlement to damages was upheld due to the delay in work caused by non-supply of cement and water release into the canal without notice.

JUDGMENT:

This regular appeal under Section 96 Code of Civil Procedure (hereinafter referred to as ‘CPC’) is directed against the decree and judgment in O.S.No.18 of 1998 dated 31.03.2004 on the file of the Court of learned I Additional District Judge, Nellore.

2. The defendant, before the trial Court, is the appellant. The respondent herein is the plaintiff.

3. The respondent instituted the suit against appellant for recovery of an amount of Rs.5,83,261-28 ps. together with subsequent interest at 24% p.a. on Rs.3,67,293/- from the date of the suit till the date of realization.

4. Before adverting to the material and evidence on record and nature of findings in the judgment of the trial Court, it is necessary to scan through the case pleaded by the parties in their respective pleadings.

5. The case of the respondent/plaintiff in brief in the plaint was as follows:

(i) The respondent being contractor entered into an agreement dated 07.09.1993 with the State of Andhra Pradesh represented by the Superintending Engineer, Somasila Project Circle, Nellore for execution of work of “removal of earth deposits and providing lining in between KM 57.925 and KM 58.327 (M 36.0.0 to 36.2.00) of Kavali Canal in the foreshore of Gattupalli Tank” and the respondent had to complete the work within twelve months from the date of agreement.

(ii) Soon after the execution of said agreement, the respondent made all necessary arrangement to complete the working within the time stipulated and invested large amounts to import labour, machinery and equipment and maintained the same to complete the said work. However, the work could not be completed within the period due to several delays, defaults and breaches of contract committed by the Department. As a result, he sustained heavy loss and his business was badly effected.

(iii) The defaults and breaches of contract committed by the Department are that:

a. as per agreement, the respondent is required to deposit the canal, excavate the original bed in fissured and fractured rock and boulders requiring blasting, providing lining to the bed of the canal with cement concrete using 60% of 40 mm and 40% of 20 mm hard broken granite mental of 20 CM thick and to construct side walls for 1(one) M height with cement concrete using 40 mm size hard broken metal.

b. Immediately after execution of the agreement, the respondent got the jungle cleared on either side of canal to facilitate stocking of materials and requested the Section Officer and Deputy Executive Engineer to record and check measure the pre-levels to enable him to start desilting. He was told by them that the estimate was prepared with the levels taken recently; that the levels would be taken as pre-levels and the work may commence immediately.

c. Believing their words, the respondent commenced desilting of canal and arranged for collecting of sand and metal required for bed lining and side walls by giving advances to the quarry contractors etc. A quality of 500 cum of sand, 80 cum of 20 mm HBG metal, 170 cum of 40 mm HBG metal and 250 cum of 40 mm HB metal was got collected at the work site. Besides the construction material, the respondent brought machinery and centering equipment to the work site with a view to execute the work as per the rate of progress given in the agreement.

d. The plaintiff got the silt removed in the canal for a length of 155 M i.e., from KM 57.925 to KM 58.080. After removal of the silt, the bed cutting was also carried out to an average depth of 0.3 M.

e. As per agreement, cement required for the work is to be supplied by the department and the cost thereof is to be recovered from the bills of the contractor. The Department supplied 40 tons of cement. The respondent started bed lining and constructing of side walls. The work was in full swing. The bed lining and the side walls were completed to a length of 125 M (from KM 57.925 to KM 58.050) with the 40 tons of cement supplied by the Department. The Department failed to supply further qu