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2025 Supreme(Kar) 1980

IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
S.G.PANDIT, GEETHA K.B., JJ.
 
The Government Of Karnataka, R/By Its Chief Secretary – Appellant
Versus
M/s. B.V. Reddy & Company, R/By Its Managing Partner, B. Venkata Reddy, S/o. Late Rami Reddy – Respondent
Comap No.100018 Of 2021 C/W, Comap No.100019 Of 2021
Decided On : 19-12-2025
 

Advocates Appeared:
For the Appellant : Sri. Manu K., Adv.
For the Respondent: Sri. Vivek Subba Reddy, Senior Counsel For Sri Krishna Mohan And Sri. A.M. Malipatil, Adv.

In a Turn-Key contract, the contractor bears full responsibility for execution; failure to meet contractual obligations excludes claims for damages arising from project failure.

Headnote:(A) Indian Partnership Act, 1932; Indian Contract Act, 1872; and Commercial Courts Act, 2015 - Turn-Key contract - Claims for damages due to bridge collapse - Plaintiff claimed damages amounting to Rs. 7,00,05,930/- with interest, alleging misrepresentation and delay from defendants - However, the court found that failures in execution were due to the plaintiff's own negligence and failure to comply with contractual obligations; various claims were unsupported by adequate evidence or necessary documentation - The contract's special conditions explicitly stated plaintiff's responsibilities, their breach led to collapse, hence plaintiff is not entitled to reimbursements. (Paras 1, 13, 50, 172)

Findings of Court:
The court upheld that neither party was at fault that entitled the plaintiff to damages, reinforcing that burden of proof lies upon those seeking to claim.

Issues: The main issues involved determining whether the plaintiff had complied with the contractual obligations and assessing validity of defendants' counterclaims.

Ratio Decidendi: The court stressed that negligence on the part of the contractor voids eligibility for claims, further establishing that claims must be substantiated with documentation.

Result: Appeals allowed; the suit of the plaintiff is dismissed with costs.

Table of Content
1. overview of appeals and procedural context (Para 1 , 2 , 3)
2. claims made by the plaintiff and contract details (Para 4 , 5 , 6 , 8)
3. plaintiff's submission of work execution under supervision (Para 10 , 11 , 12 , 41)
4. defendants’ counter-claims and allegations of negligence (Para 14 , 15 , 17 , 19 , 20)
5. trial court's issues and framing of relevant legal questions (Para 24 , 33 , 43 , 45)
6. court's reasoning on procedural missteps and legal standards (Para 49 , 52 , 56 , 60 , 66)
7. foundation for establishing breach of contract and damages (Para 105 , 110 , 120 , 130)
8. conclusion regarding claims and counterclaims (Para 176 , 178 , 180 , 182)

JUDGMENT :

GEETHA K. B., J.

1. These appeals are filed by the defendants/appellants challenging the judgment and decree passed in Commercial O.S.No.2/2020 on the file of Principal District Judge, Koppal dated 20.02.2021 and order passed in Civil Review Petition No.1/2021 dated 08.07.2021 and also dismissal of Counter-Claim filed by defendants respectively.

2. As both appeals arise out of the same case, both appeals are clubbed together, arguments heard and common judgment is being delivered.

3. Parties would be referred with their ranks, as they were before the Trial Court for the sake of convenience and clarity.

4. Plaintiff has filed the suit before Trial Court praying for damages on several claims i.e., claim Nos.(A) to (M) totally amounting to Rs.7,00,05,930/- with interest at 18% per annum from the date of suit till date of payment; for Court costs and for such other reliefs.

5. The case of plaintiff in nutshell is that plaintiff is a Partnership Firm registered under the provisions of the Indian Partnership Act, 1932, represented by its Managing Partner, Mr.B.Venkata Reddy. The plaintiff was Class-I Contractor registered with Government of Karnataka. Defendant No.4 has called for tender for construction of Cable Stayed Bridge (balance portion) across the Tungabhadra River from Anegundi Village, Gangavathi taluk to Hampi, vide Tender Notification No.1431 dated 20.08.2007. In pursuance to which, the plaintiff has submitted his tender which was accepted, work order was issued and parties entered into Agreement No.167/12/2008 dated 15.12.2008 for a contract value of Rs.662.4 lakhs with stipulation to complete the work within 6 months from the date of agreement.

6. The nature of work involved is highly technical and requires expertise consultancy and the same is quite different from general engineering skills required for ordinary bridge work. There was no sufficient time for plaintiff to acquire technical expertise and information with regard to the condition and strength of the existing cables prior to submission of bids. Since the plaintiff had only 18 days time to submit the tender documents, plaintiff had no time to get the expert advice to investigate and to know the condition of the existing cables of the existing bridge. It is surprising to note that defendants had no clue and methodology as to how to go with the execution of the work. It was a dis-jointed effort on the part of defendants without any proper planning to execute such a mind boggling work. Defendants did not furnish any methodology along with the bid documents to acquaint with the nature of the work to be done and also to proceed with the work.

7. Defendants have not investigated the condition and strength of the existing cables which were perhaps executed some years back, either prior to calling for bids or during finalisation of bids, though they took more than one year to finalise the bids.

8. However, the time stipulated for work was only six months which is impossible to complete because of the highly skilled and risky nature of work involved in the present case. Plaintiff had his own reservations but he had no other alternatives except to submit to the dictates of the defendants being a weaker party.

9. Plaintiff further contended that, defendant No. 4 directed the plaintiff to get the drawings a

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