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NITIN JAMDAR, MANJUSHA DESHPANDE
Mahalaxmi Construction Corporation – Appellant
Versus
State of Maharashtra – Respondent
JUDGMENT :
Manjusha Deshpande, J.
The Appellant herein is the original Plaintiff and is a Firm carrying on business as Civil Engineer and Contractors. Appellant has challenged the judgment and decree passed by the Small Causes Court, Pune in Special Civil Suit No.272/1999 dated 10 August 2008.
2. The prayers sought by the Appellant as under:
b) declare that the recovery towards interest charges on mobilization advance, charges for use of electricity generator as shown in the final bill is illegal, unreasonable and arbitrary and that the plaintiffs are not liable to pay the same and the defendants are not entitled to recover the same from the plaintiffs.
c) declare that the Defendants shall not encash Bank Guarantees given by the plaintiffs towards security deposits as postponement of recovery of electricity charges.
d) declare that the Defendants are not entitled to recover any amount from the plaintiffs as proposed with effect from 1.12.88 at the rate of Rs. 100/- per day which was subsequently enhanced to Rs. 1000/- per day with effect from 20.1.90.
e) order and direct and Defendants to refund the amount of said penalty recovered from the plain
The court upheld the binding nature of the contract, ruling that the Plaintiff's claims were untenable due to failure to exercise contractual options and were barred by limitation.
The judgment clarified the jurisdiction of the Civil Court, the application of the Limitation Act, and the entitlement of the plaintiff to claim losses incurred due to non-cooperation from the defend....
The main legal point established in the judgment is the entitlement to extra work payment and interest on delayed payments under the terms of the contract and the Interest Act, 1978.
Contractors cannot claim damages for delays caused by their own inaction or failure to meet contractual obligations, even if land acquisition delays occur.
The court affirmed that a contractor's claims for delays caused by defendants were valid, and it has the discretion to adjust interest rates based on economic conditions.
Civil Courts have jurisdiction to hear claims under construction contracts barred from arbitration, provided they arise within the limitation period set by specific contract conditions.
Point of law: When the appeal is presented in terms of Section 96 CPC and when this Court is considering this appeal not only as a last Court of fact but also in terms of law, it is open for the appe....
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