Validity of subcontracting requires prior approval; payment cannot claim without completed work or legal agreement.

JUDGMENT :

MARLI VANKUNG, J.

1. Heard Mrs. Mary L. Khiangte, learned Government Advocate for the State appellants. Also heard Mr. Vanlalnghaka, learned counsel for the sole respondent.

2. This is an appeal filed against the judgment order and decree passed by the learned Senior Civil Judge-IV, Aizawl Judicial District in Civil Suit No. 48/2010 dated 07.04.2021, wherein the learned Trial Court had directed the present appellants to pay the amount of Rs. 56,02,112/- (Rupees Fifty Six Lakhs Two Thousand One Hundred and Twelve) to the respondent for the materials that he had collected in respect of construction of pavement works from Mamit to Bairabi road (24.00 - 36.00 kmp) Group-III with an interest @ 9% per annum w.e.f. 15.03.2010 which is the date of institution of the suit until realization in full.

3. Facts of the case in brief is that the Civil Suit No. 48/2010 was initially filed by a Mr. P.C. Lalramthanga (late) who died during the pendency of the suit and was substituted by the present respondent Mr. PC Malsawmdawngliana, against Smt. Lalengmawii/defendant No. 1, Sh. Sangkima/defendant No. 3, Sh. K. Denghluna/defendant No. 3 and defendant Nos. 4 to 7/present State appellants, defendant No. 8/ Prem Chand Gulgulia and defendant No. 9/State Bank of India for payment of the loss suffered by him in the work executed by him for the upgradation of the pavement works from Mamit to Bairabi. The genesis of the case is that Smt. Lalengmawii/defendant No. 1, being a registered Contractor under PWD was assigned the contract work by defendant No. 6, Senior Engineer, PWD Western Circle, Aizawl vide letter dated 08.02.2007 for the up-gradation of Mamit to Bairabi road (pavement works between 24.00 - 36.00 kmp) Group-III, estimate amount being Rs. 4,58,11,910/- (Rupees four crore fifty eight lakhs eleven thousand nine hundred and ten) only which was tendered on 05.10.2006. Smt. Lalengmawii/defendant No. 1 was requested to furnish performance security within 21 days. Accordingly, the performance guarantee dated 27.07.2007 was issued by the Field Officer, State Bank of India, Aizawl Branch and thereafter, Smt. Lalengmawii/defendant No. 1 signed an agreement with the defendant No. 6 dated 19.03.2007, for the execution and completion of the said works contract.

4. It is the case of the respondent /plaintiff that Sh. Sangkima/defendant No. 2 claimed that he represented Smt. Lalengmawii/defendant No. 1 being her son- in-law and had asked the present respondent/plaintiff in the month of November, 2007 to invest in the contract. Accordingly, Smt. Lalengmawii/defendant No. 1 then executed a power of attorney in favour of the respondent/plaintiff which was said to be accepted and approved by SE, PWD, Western Circle on 12.11.2007. Later, the respondent/plaintiff and Smt. Lalengmawii/defendant No. 1 in the civil suit, signed an agreement on 08.01.2008 for sub- contracting the works contract to the respondent/plaintiff. The respondent/plaintiff paid Rs. 20,00,000/- to Sh. K. Denghluna/defendant No. 3, who is the father of defendant No. 2 for the contract work on 04.11.2007. The respondent/plaintiff then proceeded with the works in the area included in 31.00 - 36.00 kmp from January, 2008, by transporting the necessary equipments and other materials to the work site. It was agreed between the respondent/plaintiff and Smt. Lalengmawii/defendant No. 1, that both of them would jointly take all necessary action to procure bills and payments from the PWD regarding the works contract.

5. It was also the case of