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1985 Supreme(Ker) 54

Kerala High Court
K.K.NARENDRAN,M.M.PAREED PILLAY
C.I.Abraham - Appellant
Versus
K.A.Cheriyan - Respondent
Decided On : 03/07/1985

Advocates:
T.K. Kurikesu, for Appellant; C.S. Thomas and D. Peethambaran, for Respondent.

The judgment establishes the requirements for invoking S.70 of the Contract Act and the limitation period for such claims.

Headnote:

RENDITION OF ACCOUNTS - CONTRACT ACT - S.70

Fact of the Case:

The plaintiff filed a suit for rendition of accounts and recovery of a certain amount from the defendant. The defendant claimed compensation under S.70 of the Contract Act for services rendered to the plaintiff.

Finding of the Court:

The court found that the defendant failed to establish the conditions required to invoke S.70 of the Contract Act and that the alternative claim was barred by limitation. The court dismissed the appeal and confirmed the judgment and decree of the trial court.

Issues: The issues revolved around the rendition of accounts, recovery of amounts, and the defendant's claim for compensation under S.70 of the Contract Act.

Ratio Decidendi: The court held that the defendant did not satisfy the essential conditions for invoking S.70 of the Contract Act and that the alternative claim was barred by limitation.

Final Decision: The appeal was dismissed, and the judgment and decree of the trial court were confirmed.

Judgement

PAREED PILLAY, J.:- Appellant is the defendant in O.S.277 of 1975 of the III Additional Sub-Court, Ernakulam. The plaintiff (respondent herein) filed the suit for rendition of accounts and to recover Rs.19,099/-or such farther amount as would be found due to him, on settlement of accounts with the defendant together with 6% interest thereon. The learned Sub-Judge decreed the suit for Rs.19,099.89 with 6% interest from 9-10-1975 and costs against the defendant. Aggrieved by the same the above appeal has been filed by the defendant.

2. The plaintiff filed the suit for rendition of accounts by the defendant and to recover the amount as per Ext.B4 or such other sum as found due to him from the defendant on settlement of accounts. Appellant died and his legal representatives were impleaded as additional appellants 2 to

4. Defendant admitted the settlement evidenced by Ext.B4 and contended that out of the said amount Rs.11,000/- is due to him by way of commission and remuneration for the services rendered by him in purchasing a building for the plaintiff and the consequent management and supervision of the same during plaintiff's absence from India. Though plaintiff contended in the suit that the defendant is liable to rendition of accounts and that he (plaintiff) is entitled to the amount so determined he took the stand by Ext.B4 and was satisfied with the amount mentioned in it.

3. It is common case that plaintiff was employed in Ethiopia from 1950 onwards and that he used to visit his native place during vacations. He desired to purchase a building for his residence at Ernakulam after retirement. He requested the defendant who is. a relative to help him to purchase a building. Substantial portions of the money for purchasing the building was drawn by the plaintiff from his non-residential account with the Grindlays Bank. Plaintiff undertook to deposit the monthly rent of the building in the bank. It is not disputed that the defendant was entrusted to collect the rent and to remit the same in the plaintiff's bank account. It is the case of the plaintiff that though defendant collected rent, he failed to deposit the same in the bank. According to the plaintiff, rent collected from April 1967 to December 1972 would amount to Rs.38,806.50. In para 8 of the written statement, defendant contended that he received Rs.6,325/- only as rent from tenant Rajamma. Defendant examined as D.W.1 deposed that Rajamma did not pay three months rent wen she vacated the building. It is not disputed that Rajamma was in possession of the building from 1-7-1967 to 31-10-1968. The rent for that period at the rate of Rs.575/-per month would come to Rs.9,200/-. The trial Court accepting the evidence of D.W.1 that Rajamma had not paid three months rent held that defendant had collected Rs.37,081.50 towards rent from the various tenants.

4. It is the contention of the defendant that the plaintiff had agreed to give him Rs.1,000/- as remuneration for supervision and management of the property. It is also his case that he is entitled to 5% of the total value of the land and building as brokerage commission fee for the services rendered by him. In para 14 of the written statement defendant stated that settlement of accounts between him and the plaintiff was reached in 1974 and he was willing to pay the amount due to the plaintiff after deducting Rs.11,000/- due to him from out of the said amount. It is the case of the plaintiff that there was no agreement to pay any commission to the defendant. It is also his case that there was no promise to pay any annual remuneration. Defendant has not produced any documentary evidence to substantiate his contentions. In the absence of any documentary evidence and also in view of the absence of reliable oral evidence, it is really difficult to hold that the plaintiff had agreed to pay 5% commission as well as annual remuneration to the defendant for the services rendered by him. Admittedly, plaintiff is related to the d














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