IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.P. Thaker, J.
State of Gujarat & 1 others - Appellant
Versus
Ghanshyam R. Patel – Defendant
R/FIRST Appeal no. 1400 of 1996
Decided On : 25-02-2021
Civil Procedure Code,1908 - Section 96 - Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 - Section 13 - Breach of contract - Execution agreement - Defendant has contended that learned trial Judge has erred in holding that non-carrying out of work of Pump house amounts to breach of contract committed by department - It is stated that even without Pump house, plaintiff could have carried out other items in contract in absence of pump house - It is also contended that plaintiff had not completed work of fish Farm for which site was provided within stipulated time. It is also contended that learned trial Court has erred in holding that work of rolling and watering was to be carried out by department - It is further contended that as per terms of agreement, plaintiff was to carry out work of watering and consolidation - It is also contended that trial Court has committed error in holding that department could not have imposed penalty under clauses 2 and 3 as well as holding that time was not essence of contract - Contractor has abandoned work and he is not entitled to any damage - Defendant has also stated that observation of learned trial Court regarding entitlement of the plaintiff to tune towards overstay and overhead account as well account of loss of profit towards work done and not paid as well as awarding interest at rat of 15% to plaintiff - According to defendant, the learned trial Court has failed to appreciate that plaintiff itself has committed breach of contract by not completing work within stipulate period mentioned in contract agreement – Held, Trial court has calculated the said amount for entire period of contract - In no such amount for entire stipulated period and on extra time would be available to the plaintiff - Damages for overhead and overstay is permissible only for period after expiration of stipulated period of the contract. Now, in this matter stipulated period for completing contract was duration of stipulated period no damages on account of overhead and overstay is permissible - Count only amount for 1 and 1/2 months could be awarded to plaintiff - For calculating the damages on this count, formula adopted by learned trial Court for granting overhead and overstay at rate month is proper amount for 1 and 1/2 month would come - Learned trial Court has committed serious error of facts and law in granting amount overhead and overstay - Plaintiff contractor is only entitled to get head - Expected loss of profit and on account of interest on damages Security deposit account of work done but not paid - Learned trial Court has committed error of fact and law in granting for overhead and overstay - Excess amount on count of "overhead" and "overstay" needs to be modified - Interest granted by learned trial Court at rate of 15% is on higher side which is required to be modified to extent that plaintiff is entitled to get interest at rate of 12% simple interest from date of filing of suit till the date of filing of the appeal and after filing of this appeal, rate of interest would be 9% till realisation of the amount releasing of deposit - Interest at rate of 12% simple interest from the date of filing of the Suit till the date of filing of Appeal and thereafter rate of interest would be 9% from the filing of Appeal till realisation of the amount – Ordered Accordingly
JUDGMENT :
1. Being aggrieved and dissatisfied with the judgment and decree passed by the learned Civil Judge (S.D.), Valsad on 16.12.1995 in Special Civil Suit No.16 of 1989, the defendant has preferred this Appeal under Section 96 of the Civil Procedure Code.
2. For brevity and convenience the parties are referred to herein as per their status before the trial Court.
3. The defendant has contended that the learned trial Judge has erred in holding that non-carrying out of work of Pump house amounts to breach of contract committed by the department. It is stated that even without the Pump house, the plaintiff could have carried out the other items in the contract in the absence of pump house. It is also contended that the plaintiff had not completed the work of fish Farm for which the site was provided within the stipulated time. It is also contended that the learned trial Court has erred in holding that the work of rolling and watering was to be carried out by the department. It is further contended that as per the terms of the agreement, the plaintiff was to carry out the work of watering and consolidation. It is also contended that the trial Court has committed error in holding that the department could not have imposed penalty under clauses 2 and 3 as well as holding that the time was not the essence of the contract.
3.1 It is also submitted that error has been committed by the learned trial Court in holding that the department has failed to prove that the plaintiff did not complete the work within the stipulated period due to its own fault. It is the contention of the defendant that the learned trial Court has not properly interpreted Exh-55 letter dated 4.1.1988 written by the plaintiff, which clearly indicates that the Contractor has abandoned the work and, therefore, he is not entitled to any damage. The defendant has also stated that the observation of the learned trial Court regarding entitlement of the plaintiff to the tune of Rs.1,04,905/- towards overstay and overhead account as well as Rs.52,000/- on account of loss of profit and Rs. 2 lakhs towards work done and not paid as well as awarding interest at the rat of 15% to the plaintiff. According to the defendant, the learned trial Court has failed to appreciate that the plaintiff itself has committed breach of the contract by not completing the work within stipulate period mentioned in the contract agreement and, therefore, he is not entitled to any compensation. According to the defendant, the learned trial Court ought to have held that that the plaintiff has abandoned the work as per letter Exh-55.
3.2 It is further contended that the learned trial Court has failed to appreciate that Section 13 of the Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 puts a bar on the Civil Court to deal with or decide any question, which the Tribunal is empowered to deal with and decided uner the said Act. It is contended that the learned trial Court has committed jurisdiction error as well as did not appreciate oral as well as documentary evidence in proper perspective and wrongly passed the impugned judgment and decree in favour of the plaintiff and against the defendant.
4. Heard Mr. Soaham Joshi, learned AGP for the Appellant and Mr. B.S.Patel, learned Senior Counsel with Mr. C.B. Patel, learned advocate for the respondent-original plaintiff through videoconferencing.
5. Mr. Joshi, learned AGP has vehemently submitted the same facts which are narrated in the Appeal memo. While referring to the oral evidence on record, he has submitted that there is no dispute as to the execution agreement for carrying out the work in question. He has submitted that the work was to be completed in a stipulate period. However, the plaintiff has not completed the same and has abandoned the work by letter at Exh-55. Mr. Joshi has also submitted that as the plaintiff did not com
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