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2025 Supreme(HP) 1786

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
ROMESH VERMA, J.
M/s Himachal Sorang Power Pvt. Ltd. – Appellant
Versus
Suresh Bisht – Respondent
RFA No. 312 of 2018
Decided On : 05-12-2025

Advocates Appeared:
For the Appellant : Shreya Chauhan
For the Respondents: J.S. Bhogal, Tarunjeet Singh Bhogal, Srishti Verma

Fraud allegations require specific pleadings with particulars under CPC Order VI Rule 4; vague pleas rejected. Limitation for work recovery runs from contract-specified final bill settlement date. Privity by direct award despite intermediaries.

Headnote:(A) CPC Order VI Rules 1,2,4 - Pleadings - Fraud, misrepresentation, fabrication must be specifically pleaded with particulars (dates, items); general, vague, cryptic allegations insufficient; burden on alleging party to prove with evidence, failure draws adverse inference. (Paras 11-18)

(B) Limitation Act Article 18 - Recovery suit for price of work done - 3 years limitation from date final claims settled (per contract: final bill within 1 month of completion + settlement within 5 months); final measurements Dec 2009, settlement due May 2010, suit filed Apr 2013 within time. (Paras 19-26)

(C) Contract Law - Privity of contract - Established by direct award letter from defendant to plaintiff and principal employer certificate; intermediary role irrelevant, non-joinder not fatal. (Paras 27-32)

(D) Evidence - Adverse inference against defendant for unauthorized witness lacking board resolution/power of attorney validity, unproved documents, failure to examine intermediary officials or produce records proving payment. (Paras 33-39)

Facts of the case:
Plaintiff contractor filed recovery suit for Rs.25,00,000/- against defendant company for unpaid work on bridge abutment and road (RD 0.1430 to 0.1830 mtrs.) awarded vide letter dated 4.1.2007, completed June 2008, final measurements/bill Dec 2009. Trial court partly decreed Rs.20,61,000/- with 6% interest w.e.f. 1.1.2010 till suit + future interest. Defendant appealed alleging fraud in award letter, limitation bar, non-joinder of intermediary, evidence misappreciation.

Findings of Court:
Plaintiff entitled to recovery of Rs.20,61,000/- along with interest @ 6% per annum w.e.f. 1.1.2010 till suit filing date and future interest till realization.

Issues: Whether plaintiff entitled to recovery; suit barred by fraud, limitation, non-joinder, estoppel; evidence properly appreciated.

Ratio Decidendi: Fraud plea rejected for lack of specific pleadings/evidence. Limitation upheld per contract terms from final measurements. Privity proven by award letter, labour licence, employer certificate. Defendant failed to rebut claim or prove payment; evidence unreliable.

Result: Appeal dismissed; trial court decree upheld.

Table of Content
1. contractor sues for unpaid construction work recovery. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. arguments: fraud, limitation, non-joinder raised. (Para 9 , 10)
3. fraud requires specific particulars in pleadings. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
4. limitation from final bill settlement period. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)
5. award letter proves direct privity. (Para 27 , 28 , 29 , 30 , 31 , 32)
6. adverse inference; plaintiff proved claim. (Para 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42)

JUDGMENT :

ROMESH VERMA, J.

1. The present appeal arises out of the judgment and decree, dated 6.6.2018, as passed by the learned Additional District Judge (I), Shimla, whereby the suit filed by the respondent/plaintiff against the appellant/defendant for recovery of Rs. 25,00,000/- has been partly decreed and the respondent/plaintiff has been held entitled for recovery of Rs. 20,61,000/- along with interest @ 6% per annum w.e.f. 1.1.2010 till the date of filing of the suit and also future interest from the date of filing of the suit till the realization of entre amount.

2. The facts, which emerge in the case, are that the respondent/plaintiff filed a suit for recovery of Rs.25,00,000/- against the appellant/defendant i.e. M/s Himachal Sorang Power Pvt. Ltd., through its Managing Director. It was averred in the plaint that the respondent/plaintiff is a contractor and he undertakes civil construction for various departments of the government as also for private organizations. The appellant/defendant is a company incorporated under the Companies Act and is engaged in constructing Sorang Hydro Power Project in District Kinnaur. It was averred that the respondent/plaintiff had been awarded works relating to construction of right abutment of bridge and road to power house from RD 0.1430 mtr. to 0.1830 mtr. of the Sorang HEP (100 MW) in District Kinnaur by the appellant/defendant- company vide letter of award dated 4.1.2007. The said works were required by the appellant/defendant for the purposes of the Sorang Hydro Power Project being set up by it. It was further averred that the respondent/plaintiff got executed the works under the supervision and control of M/s SSJV Projects Pvt Ltd., another company also incorporated under the Companies Act 1956, which company was also preparing the bills for the work executed by the respondent/plaintiff and also arranging payment of the bills for the work done. It was further averred that the respondent/plaintiff completed the work awarded to him to the entire satisfaction of the appellant/defendant in June 2008.

3. The final measurements in respect of the work executed by the respondent/plaintiff were also done by M/s SSJV in December 2009 and a bill on the basis of the measurements so recorded was also prepared but no payment against the same was made to the respondent/plaintiff. The measurements so recorded were also not correct on the basis of the actual work done by the respondent/plaintiff, which had been got measured by him and even measurements were also sent to the appellant/defendant, therefore, the actual amount still payable to the respondent/plaintiff comes to Rs.20,61,045/-. The respondent/plaintiff averred that after completion of the work, he had been requesting the appellant/defendant to make payment, but the appellant/defendant was putting off the respondent/plaintiff on one pretext or the other, which led to issuance of legal notice to the appellant/defendant through his counsel on 15.12.2011 but the payment was still not made to the respondent/plaintiff. He averred that alongwith principal amount, he is also entitled to interest and cost of legal notice and total amount payable is Rs. 29,08,470/-. However, he restricted his claim for a sum of Rs.25,00,000/-. The respondent/plaintiff also submitted that the cause of action for filing the suit against the appellant/defendant accrued to the respondent/plaintiff first when the works were awarded to the






















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