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2011 Supreme(Ker) 13

High Court of Kerala
THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN & THE HONOURABLE MR. JUSTICE P. BHAVADASAN
M/s. G.K. Engineering Works, Represented By its Proprietor, V.A. Davidresiding at Vadakoodu House
Versus
St.John The Baptist Church, Aluva & Another
RFA.No. 616 of 2010
Decided on : 05-01-2011

Advocates Appeared:For the Petitioner:Daisy A. Philipose, Advocate. For the Respondent:Paul K. Varghese, Advocate.

The main legal point established in the judgment is that the first defendant occupied a fiduciary status and the amount due to the plaintiff was in the nature of a trust, invoking Section 10 of the Limitation Act.

Headnote:

Construction Work - Limitation - Trust and Fiduciary Relationship - [CONSTRUCTION WORK] - [LIMITATION] - [Limitation Act, Section 10] - The court analyzed the evidence and found that the plaintiff was entitled to the amount claimed by him for construction work. The court also considered the issue of limitation and the fiduciary relationship between the parties. It held that the first defendant occupied a fiduciary status and the amount due to the plaintiff was in the nature of a trust, thus invoking Section 10 of the Limitation Act. The court concluded that the plaintiff was entitled to relief and allowed the appeal, passing a decree in favor of the plaintiff.

Fact of the Case:

The plaintiff did construction work for the defendants and claimed amounts for the same. The work commenced on 4.6.1991 and was delayed due to an obstacle caused by the school authorities. The plaintiff claimed a sum of Rs.20,86,913/- with interest at 12%. The first defendant contested the suit, denying any agreement with the plaintiff. The court below found the plaintiff entitled to the amount claimed but non-suited him on the ground of limitation.

Finding of the Court:

The court found that the plaintiff was entitled to the amount claimed for construction work and that the first defendant occupied a fiduciary status, invoking Section 10 of the Limitation Act. The court concluded that the plaintiff was entitled to relief and allowed the appeal, passing a decree in favor of the plaintiff.

Issues: The main issue was whether the suit was barred by limitation. The court also considered the fiduciary relationship between the parties and the acknowledgment of liability by the first defendant.

Ratio Decidendi: The court held that the first defendant occupied a fiduciary status and the amount due to the plaintiff was in the nature of a trust, invoking Section 10 of the Limitation Act. The court concluded that the plaintiff was entitled to relief and allowed the appeal, passing a decree in favor of the plaintiff.

Final Decision: The court allowed the appeal, set aside the judgment and decree of the court below, and passed a decree in favor of the plaintiff, awarding him a sum of Rs.13,82,062.90 with interest at 6% from 20.8.2001 till realization from the first defendant and its assets. The plaintiff was also entitled to costs throughout.

Judgment :

C. R. Bhavadasan, J, The plaintiff did the work of construction of a school building for the defendants. He claimed amounts in that regard. According to him, as per Ext.A8 document dated 30.5.1991 he had commenced the work. The work commenced on 4.6.1991. The work had to be suspended due to an obstacle, which the school authorities had to clear. That took sometime and that delayed the work. As the delay was due to the inaction on the part of the school authorities, he sought enhancement of rates and according to the plaintiff he was granted 10% increase of rates. He presented a bill for Rs.4,01,752.18 towards the purchase of steel and cement, that was approved by the School Committee as per the decision dated 20.11.1992. He had then submitted a bill for Rs.7,32,148.31, which was verified by the second defendant in the suit and approved by the school committee. Another bill for Rs.1,22,520.42 was alsoaccepted and approved by the school committee. Since the school committee did not have sufficient funds at that point of time, the plaintiff was asked to wait, promising that as soon as funds are made available, the amounts will be paid to him. Ext.A5 is the letter which acknowledges the liability of the first defendant. Repeated requests thereafter to release the amount did not invoke response and the school authorities kept on saying that funds were not available with them. They however promised that as soon as funds would be available to them, the demand will be met. Surprisingly he received Ext.A4 letter dated 20.6.2003 in reply to his request for release of amount stating that no amount was due to him and in fact amounts were due to the first defendant from him. This turn around on the part of the first defendant was of considerable surprise to the plaintiff and therefore he approached the court for redressal of his grievances. He claimed a sum of Rs.20,86,913/-with interest at 12%.

2. The first defendant contested the suit. Several contentions were taken, like mis-joinder, non-joinder etc., which are not very relevant in the context. They denied that the plaintiff had done any work for the Church and infact their case was that the claim put forward by the plaintiff is a totally false one. It was a result of the collusion and fraud played by the plaintiff and the second defendant. They denied of having entered into any agreement with the plaintiff. In fact a reading of the written statement would show that except for total denial of all the allegations, nothing more is stated in the written statement.

3. Based on the pleadings available in the case, issues were raised by the court below. The evidence consists of the testimony of P.W.1 and 2 and documents marked as Exs.A1 to A8 from the side of the plaintiff. First defendant examined D.W.1 and Exts.B1 to B3 series were marked. The court below on an evaluation of the evidence came to the conclusion that the plaintiff is entitled to the amount claimed by him. However he was non-suited on the ground of limitation. Hence the appeal.

4. The only question that arises for consideration in this appeal is whether the finding of the court below that the suit is barred by limitation is justified in law.

5. Learned counsel appearing for the appellant pointed out that the court below had on an evaluation of the evidence had come to the conclusion that amounts as claimed by the plaintiff is due to him from the first defendant. However, the court below held against him on the ground of limitation. Learned counsel went on to point out that the Church had promised that as soon as funds were available with them, they would pay off the amount due to the plaintiff. Plaintiff kept on making demand for the amount and the defendants replied that they would pay the amount as soon as they have funds with 12% interest. At no point of time, except as per Ext.A4, the school authorities had denied their liability towards him. The Church authorities occupied a fiduciary capacity and it was not pos


























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