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2015 Supreme(Del) 1525

IN THE HIGH COURT OF DELHI AT NEW DELHI
VALMIKI J. MEHTA, J.

DELHI METRO RAIL CORPORATION LTD. - Plaintiff
Versus
SATISH GUJRAL - Defendant
CS(OS) No. 120/2006
Decided On : 20.7.2015

Advocates:
Advocate Appeared:
Mr. Tarun Johri, Advocate.
Mr. Venancio D’costa, Advocate with Mr. Saleem Hasan, Advocate.

The defendant's breach of contract led to the plaintiff's entitlement to a refund of the advance amount and simple interest at 9% p.a. from the date of breach till the date of filing of the suit.

Headnote:

Breach of Contract - Artworks - Indian Contract Act, 1872 - Section 65, 70, 73 - The defendant was contractually bound to supply murals on the subject 'Speed'. The defendant's argument that he, as a world renowned artist, had final authority over the designs was rejected by the court. The defendant's breach of contract led to the plaintiff's entitlement to a refund of the advance amount and simple interest at 9% p.a. from the date of breach till the date of filing of the suit.

Fact of the Case:

The plaintiff, Delhi Metro Rail Corporation Ltd., filed a suit for recovery of money against the defendant, a world renowned artist, for breach of contract. The plaintiff claimed that the defendant had committed breach by withdrawing from the project and failing to supply murals on the agreed subject matter of 'Speed'.

Finding of the Court:

The court found in favor of the plaintiff, holding the defendant guilty of breach of contract and liable to refund the advance amount of Rs.10 lacs. However, the plaintiff failed to prove damages caused by the breach. The plaintiff was entitled to a refund of Rs.10 lacs along with simple interest at 9% p.a. from the date of breach till the date of filing of the suit.

Issues: The issues framed by the court were: (1) Whether the plaintiff could reject the murals made by the defendant? (2) Whether the defendant is liable to refund the advance amount of Rs.10 lakhs? (3) Whether the plaintiff is entitled to any damages? (4) Whether the plaintiff is entitled to the amount claimed in the suit? (5) Whether the plaintiff is entitled to any interest?

Ratio Decidendi: The defendant was contractually bound to supply murals on the subject 'Speed'. The defendant's argument that he had final authority over the designs was rejected. The defendant's breach of contract led to the plaintiff's entitlement to a refund of the advance amount and simple interest at 9% p.a. from the date of breach till the date of filing of the suit.

Final Decision: The suit of the plaintiff was decreed against the defendant for a sum of Rs.10 lacs along with simple interest at 9% p.a. from the date of breach till the date of filing of the suit. The plaintiff was also entitled to costs of the suit.

JUDGMENT

VALMIKI J. MEHTA, J.

1. This is a suit for recovery of money filed by plaintiff/Delhi Metro Rail Corporation Ltd. A total amount of Rs.36,50,000/- (Rupees Thirty Six Lacs Fifty Thousand only) is claimed from the defendant. Out of the amount of Rs.36,50,000/-, an amount of Rs.10,00,000/- (Rupees Ten Lacs only) is the amount which was paid as advance to the defendant for the eight artworks/murals which the defendant was to create and thereafter supply to the plaintiff, and with respect to which obligation the defendant has as per the suit, committed breach. Plaintiff claims that defendant has committed breach of contract by withdrawing from the project and even the two murals, out of the total of eight murals which the defendant had to supply, were not made on the agreed subject matter of “Speed”, and hence, defendant is liable to refund the amount of Rs.10 lacs which was paid as an advance amount by the plaintiff to the defendant. The price of the eight murals which was to be paid to the defendant was a sum of Rs.20 lacs. The plaintiff in addition to recovery of the advance of Rs.10 lacs seeks damages of Rs.25 lacs on account of delay in the finalisation of the finishes and treatment to be done on the walls and ceiling of the concourse level upon which the said artworks/murals to be supplied by the defendant was to be implemented.

2. Defendant has contested the suit. As per the defendant he is a world renowned artist and plaintiff had no right to reject the murals/artworks supplied by the defendant, inasmuch as, the defendant under the contract was to be the final judge of the artworks/murals i.e whether the artworks/murals did or did not fall under the subject of “Speed”. It is also contended on behalf of the defendant that there was no agreement for supply of murals under the subject “Speed” and plaintiff is unjustified in arguing that the artworks/murals supplied by the defendant are not on the subject of “Speed”. The contention of the defendant also is that he is not liable to refund a sum of Rs.10 lacs because this amount is to be taken as the value of two murals which the defendant has supplied to the plaintiff. The claim for damages made by the plaintiff of Rs.25 lacs is also denied. It is prayed that the suit of the plaintiff be dismissed.

3. In the suit the following issues were framed on 23.08.2007:-

“(1) Whether as per the terms of the contract, the plaintiff could reject the murals made by the defendant? OPP

(2) Whether the defendant is liable to refund the advance amount of Rs.10 lakhs taken by him from the plaintiff? OPP

(3) Whether the plaintiff is entitled to any damages? If so, to what amount? OPP

(4) Whether the plaintiff is entitled to the amount claimed in the suit? OPP

(5) Whether the plaintiff is entitled to any interest? If so at what rate and on what amount and for which period? OPP

(6) Relief.”

4. My findings with respect to the above issues are:-

ISSUE NO.1

(1) Whether as per the terms of the contract, the plaintiff could reject the murals made by the defendant? OPP

5. The crux of the matter is what were the terms between the parties and as to whether the defendant was bound to supply murals on the subject “Speed”. Also, related to this aspect is the aspect as to whether the defendant is the final judge of the murals/artworks to be supplied by the defendant to the plaintiff and as to whether the plaintiff under no circumstances can question the designs of the murals supplied by the defendant, although, as per the plaintiff the artworks/murals supplied have no nexus or correlation to the subject “Speed”.

6. The offer made by the defendant to the plaintiff is contained in the letter of the defendant dated 14.10.2004 addressed to Ms. Tripta Khurana, Chief Architect of the plaintiff. This document is Ex. P-1. This letter dated 14.10.2014 reads as under:-

“14 October 2004

Ms. Tripta Khurana

Chief Architect

Delhi Metro, New Delhi

Sub: Mural Work for the Upper Level of Connaught Place station of Metro

Dear Madam,

Kindly r























































































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