The main legal point established in the judgment is the importance of proving contractual obligations, the implications of failing to prove full and final payment, and the necessity of pleading and proving grounds for rectification of a contract.

Rajiv Sahai Endlaw, J.

1. This appeal impugns the judgment and decree dated 30.10.2004 (of the Court of Additional District Judge in Suit No.045/02/2002 filed by the respondent/plaintiff) of recovery of arrears on account of increase in wages as shown vide statement of account Ex.DW1/PX5 for the period from May, 1999 onwards from the appellant/defendant with interest pendente lite at 8% per annum and costs.

2. The appeal was admitted for hearing and vide order dated 22.09.2005, subject to the appellant/defendant depositing the decretal amount in this Court, execution was stayed. Vide subsequent order dated 11.05.2006, the decretal amount so deposited by the appellant/defendant was ordered to be released to the respondent/plaintiff subject to furnishing security for restoration of the said amount with interest at 8% per annum in the event of the appeal being allowed. The appeal was on 22.05.2009 dismissed in default of appearance of the parties but on an application of the appellant/plaintiff was restored vide order dated 27.07.2009. Attempts at compromise thereafter remained unsuccessful. It appears that the respondent/plaintiff has not withdrawn the decretal amount deposited by the appellant/defendant as was permitted, as the amount of Rs.6,08,473/- is stated to be still lying in the FDR. The counsels were heard on 09.10.2013. However the hearing was adjourned on the request of the counsel for the respondent/plaintiff as he was on that date unable to show as to how it had proved its claim. On 11.10.2013, the counsel for the respondent/plaintiff sought an adjournment stating that he wanted to engage a senior counsel. Today, inspite of passover the senior counsel for the respondent/plaintiff has not appeared and the counsels have been heard further.

3. The respondent/plaintiff instituted the suit from which this appeal arises, for recovery of Rs.8,29,075/- with interest, pleading:

(i) that vide Agreement dated 04.09.1995 between the parties, it was agreed that the respondent/plaintiff shall provide security personnel at the appellant/defendant’s hotel for round the clock security arrangement for all seven days of the week;

(ii) that the said contract was renewed from time to time, upto 31.03.2002; thus the respondent/plaintiff had been providing security arrangement at the appellant/defendant’s hotel since 1995;

(iii) that the appellant/defendant for the first time vide letter dated 01.08.2001 made complaint regarding the performance of security guards provided by the respondent/plaintiff;

(iv) that on 18.08.2001, the respondent/plaintiff sent a letter to the appellant/defendant asking them to make payment of arrears of Rs.8,29,075/-;

(v) that the appellant/defendant vide letter dated 20.08.2001 terminated the contract and asked the respondent/plaintiff to withdraw the services with effect from 01.09.2001;

(vi) that the appellant/defendant under the terms of the Agreement was required to make full and final payment of all dues before termination; and,

(vii) that the respondent/plaintiff had earlier also instituted a suit for restraining the appellant/defendant from terminating the contract without settling the dues of the respondent/plaintiff but the said suit was disposed of giving liberty to the respondent/plaintiff to initiate the appropriate proceedings for recovery of its dues. Accordingly, the suit for recovery of the said sum of Rs.8,29,075/- along with pendente lite and future interest at 18% per annum was filed.

4. The appellant/defendant contested the suit by filing a written statement denying that any amount was due to the respondent/plaintiff and pleading that all bills raised by the respondent/plaintiff from time to time had been fully and finally paid. Though the plaint was absolutely quite as to the particulars of the arrears claimed but in the written statement, it was also pleaded that a sum of Rs.2,36,114/- had been paid by the appellant/defendant to the respondent/plaintiff vide cheque date