IMPORTANT POINT
A party to a contract is entitled to damages for expenses incurred due to the other party's breach, especially when proper communication of contract termination is not made.

JUDGMENT :

V.R.K. Krupa Sagar, J.

1. Plaintiff lost his money claim before the trial court and therefore preferred this appeal under section 96 CPC impugning the judgement dated 06.01.2009 of learned Additional Senior Civil Judge, Kurnool who dismissed his suit in O.S.No.288 of 2006. Respondents herein are the defendants in the suit.

2. Syndicate Bank intended to open SSI branch of the bank. Sri S. Mojaruddin alias S. Mansoor/ appellant owns plot nos. 1 and 2 situated in Survey Number 454/1, 453 of Kallur Village within Municipal Corporation of Kurnool which is described in the plaint schedule. It is undisputed that plaintiff expressed his readiness to construct a building in his plaint schedule open site and the bank agreed to take it on lease. Accordingly, Sri S. Mojaruddin/ plaintiff/ appellant commenced certain works in his plaint schedule vacant site and thereafter the works were stopped allegedly at the behest of the officers of the responding bank. It is in the context of these facts the controversy erupted between the parties

3. In the plaint filled by this appellant he refers to two letters addressed by the defendants (Ex.A1 dated 24.03.2005 and Ex.A2 dated 26.04.2005). It is pleaded that since by these letters he was requested by the defendant bank to commence the construction of the building, he started construction work in the month of May, 2005. He continued the work till the end of October, 2005. Thereafter, the defendants called upon him to express their inability to open their branch in the building that was proposed to be constructed by the plaintiff on the plaint schedule site. Till the end of May, 2006, the defendants did not ask him to resume the work. It is further pleaded that between May, 2005 and October, 2005 plaintiff consulted an architect, got the soil excavated by digging it up to the depth of six feet. He dug a bore well and installed an electric submersible motor in the plaint schedule site. He stocked materials like sand, cement, iron and stone for the purpose of construction of the building. He gave details of the expenditure incurred by him.

4. It is specifically pleaded at paragraph No.4 of the plaint that the plaintiff had to incur these expenditures by doing the works as directed by the defendants through their plans and revised plans which were to be approved by the Municipal Corporation, Kurnool. Plaintiff had paid fees to get the approval of the plans and did the further work. As the defendants committed breach of contract it caused loss to the plaintiff in many ways which include altering the nature of the property by digging the pits and by expending money to carry on the construction and disruption of the work caused damage to the reputation of the plaintiff. It is in those circumstances, he claimed Rs.1,93,106/- towards the cost of construction, purchase of materials, payments made towards the fees for approval of the plans. He claimed Rs.85,750/- towards the estimated cost for filling up of the excavated pits so as to restore its earlier shape. He claimed Rs.3,00,000/- towards damages for loss of reputation because of breach of contract. Accordingly, he sued the defendants for Rs.5,78,856/- with 18% future interest over the said amount and for costs and such other reliefs.

5. 1st defendant filed its written statement and 2nd dependent filed a memo adopting the same. After making specific denials of assertions made in the plaint, it is pleaded by defendants that the plaintiff had suppressed certain material facts. It is stated that it was in response to the tenders floated by it, plaintiff had approached it and it accepted the bids and accordingly agreed for the building to be constructed by the plaintiff. It is specifically pleaded that plaintiff executed requisite documents wherein he agreed to confirm the offer of the defendants to construct the building at the earliest by strictly adhering to the terms and conditions imposed by the bank and that the construction should be in terms of t