IN THE HIGH COURT OF BOMBAY
H.H. Kantharia A.A. Halbe, JJ.
The State of Maharashtra and others... Appellants.
Versus
Saifuddin Mujjaffarali Saifi... Respondent.
First Appeal No. 259 of 1985, decided on 25/29-6-1993.
Advocates appeared :
D.U. Mirajkar, A.P.P., for appellants.
P.N. Karlekar, for respondent.
Section 9-Implied contract-Scope of.
On the completion of tender and the communication of its acceptance to the contractor, a valid and legal contract comes into force. Filing of tender is in the form of lodging a proposal and acceptance of the tender and the rates mentioned therein is the acceptance of tender which brings into existence the concluded contract between the parties. A, term which is not actually included in a written contract cannot be implied unless the Court comes to a clear conclusion that both the parties must have intended that the term should be implied. However, it must be emphasized that a very important question arises a contract between the parties can be implied. The contract can be implied and it is clear from Section 9 of the Indian Contract Act, but it is the fundamental principle of law that the Court should not make a contract for the parties. It follows that a clear case must be made out before doing so. B, contract implied in fact requires meeting of minds. The Court should refuse to read an implied term into contract which is silent on the point or did not clearly indicate the nature of term. However, when the stipulations are clear and in contemplation of the parties or which necessarily arise out of the contract between the parties, they will be implied i.e. stipulations on the part of the employer to allow the builder to do the work and to give possession of the site, to supply plans, etc.
Section 3(1)(b) read with Section 2 (b)-Expression current rate of interest -Meaning and definition of.
Deposits of Co-operative Banks not taken in its sweep by definition of current rate of interest but it is in respect of Scheduled Banks.
A.A. HALBE, J.:—-The State of Maharashtra and its Officers have preferred this appeal against the judgment and decree passed by the Civil Judge, Senior Division, Dhulia, in Special Civil Suit No. 17 of 1984, directing the appellant/State to pay Rs. 2,18,755/-, together with six per cent interest from the date of filing of the suit till realization to the respondent/plaintiff. The matter arises as follows.
The State proposed to construct the bridge across river Serpani at Mile No. 76 (622 Kms.) on Surat-Dhulia-Edlabad-Nagpur road. Accordingly, the tenders were invited and in response thereto various contractors submitted their tenders on due date and in time. On the scrutiny of those tenders, the tender of the plaintiff was found to be lowest as he had quoted rates at 4.91 per cent above the estimated rate. The plaintiff had attached certain conditions while submitting the tender, but later on withdrew those conditions and submitted the letter to that effect. Briefly, therefore, the tender of the plaintiff was accepted at the rate 4.91 per cent above the estimated amount of the tender. It seems that the tender was published for Rs. 4,55,273/-, but in pursuance of the acceptance of the tender of the plaintiff, the estimated cost of the work rose to Rs. 4,77,627. The appellant/defendant No. 2 issued the work order AB/T/4781/78 on 5-7-1978 and it is not in dispute that the plaintiff started the work of the construction of the bridge across the said Serpani river. The prescribed time limit for this work was 18 months which on the basis of 5-7-1978 was 4-1-1980. It is, however, not in dispute that this date remained on paper and on account of several circumstances beyond the control of the plaintiff as well as the defendants, the construction of the bridge was completed on 15-2-1981.
2. The allegations of the plaintiff are that during the execution of the work, the plaintiff found several defects in putting up the foundation both for abutment and piers. The excavation had to be done deeper than the designed level and this necessitated further dewatering in the river bed. The plaintiff, therefore, wrote a letter to defendant No. 2 on 25-10-1978 pointing out the difficulties in respect of excavation of foundation and dewatering. It was stated in the said letter that the rates in the tender for this work were far less than the cost which he was required to incur for carrying out this work. To the details of this letter, we shall come later, but suffice it to say at this stage that the differences started right from 24-10-1978. As usual, the appellants did not respond to this letter and this was followed by another letter, from the plaintiff dated 2-10-1979, inter alia, making the same grievance about the demand for rise in rates for the works indicated above. It is further contended that the defendant No. 2 under his letter No. E-8/NW/7594, dated 2-11-1979, replied to the plaintiff that the excavation was made in the soft strata as well as hard strata and thus the total quantity of excavation for foundation had not increased. It may be stated here that in the tender there was no reference whatsoever to the soft strata and digging had to be done or excavation had to be done, it was inhard strata. With this reply, the differences multiplied as the respondent/plaintiff could envisage that the appellants/defendants were determined not to pay him as per his demand. The appellant/defendant emphasized that the respondent/plaintiff could not demand the rate for hard strata. There was a classification in strata and the payment could only be made according to the hard strata and soft strata. It must be stated here that for hard strata, the rate was Rs. 30/- per cubic metre. There was no reference whatsoever to soft strata, but the appellant has relied upon, for that purpose, on District Scheduled Rates (D.S.R.). For this purpose, reference was made to Clause 38 of the Agreement read with the instructions contained in Government, B. C. D
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