The main legal point established in the judgment is the application of section 70 of the Indian Contract Act, 1872, and the principles governing the award of interest in contractual disputes.

M. S. Menon, J.

1. The State of Kerala and the General Manager, Travancore Minerals Concern, Chavara, are the appellants before us. They were the defendants in O. S. No. 19 of 1958 of the District Court of Quilon. The respondent, a contractor of the Minerals Concerns, was the plaintiff in that suit.

2. The claim was for a sum of Rs. 12,669-1-6. The lower court considered the various contentions urged before it and decreed the suit with costs.

3. Ext. D1 is the agreement between the parties. It was concluded on 16-11-1954 and was to be in force for a period of one year from that date.

4. Under the agreement the respondent had to collect sand from the mining area on the beach and to give delivery at the elevator pit. After the collection at the beach and before the trucking to the elevator pit the respondent was bound to dry the sand and stock the same in sheds which will be provided by the Concerns at the landing places from time to time.

5. Subsequent to the contract the Minerals Concerns took on lease a property outside its original premises and put up three sheds therein in addition to the sheds in the old premises. It is not possible to say that stocking in sheds court side the original premises was in the contemplation of the parties at the time the contract was entered into or that such sheds come within the ambit of sheds which will be provided by the Concerns at the landing places from time to time. Those words can only cover such sheds as are provided at the landing places in the original premised and not at any places or places outside those premises.

6. It is common ground that the respondent was paying his labour only 8 annas 4 ½ pies per ton for the trucking operation from the sheds in the original premises to the elevator pit and that he had to pay 7 annas 7 ½ pies more per ton in respect of the 25,084 tons which the trucked from the new sheds to the elevator pit. The claim in the suit for the recovery of the enhanced payment made by the respondent.

7. The correspondence relating to the enhanced rate consists in chronological order -of Exts. P. 9 (19-5-55), D. 4(21 -5-55), P. 2(27 -5 -55), P. 10 (31 -5 -55), P. 4 dated nil, P.7 (11 -6 -55), P. 14 (19 -7 -55), P. 11 (28 -7 -55), P. 12 (14 -9 -55), and D. 7 (17 -5 -56). Of these Ext. P. I. a letter from the Workers Union. Justifies the demand for payment at Re. 1/- per ton as follows:

The average distance of the four existing sheds is 645 ft. for which we are receiving Rs. 0-8-4 ½ . The distance of the new sheds is 1100ft. for which we have demanded Re1/- only. On an average we have to cover 450 ft. more, while a distance of 950 ft. has to be covered more from the shed least away from the conveyer. So on a comparative study it is found that our demand is only proportionate to the existing rates, if not a little less.

None of these letters, however, or anything else on record justifies the respondent's contention that the appellants agreed to pay him at the enhanced rate for the trucking from the new sheds to the elevator pit.

8. The only further contention that arises for consideration is whether the respondent is entitled to be paid at the enhanced rate even in the absence of an agreement to that effect. His contention is that he is so entitled by virtue of section 70 of the Indian Contract Act, 1872. That section provides:

Where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such other person enjoys the benefit thereof, the latter is bound to make compensation to the former in respect of or to restore, the thing so done or delivered.

9. Of the 25084 tons trucked from the new sheds to the elevator pit 971 tons were trucked prior to Ext. P. 14 and the balance of 24,113 tons subsequent to it. Ext. P. 14 dated 19-7-1955 told the respondent in unmistakable terms that the appellants were not prepared to pay him at the enhanced rate:

With reference to his letter dated 31-5-1955 on the above subject an