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