SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2005 Supreme(Jhk) 476

High Court Of Jharkhand
Judgename : HARI SHANKAR PRASAD
SANTU PRASAD DAS - Appellant
Versus
EASTERN COAL field LTD., DEOGHAR - Respondents
F. A. 328 Of 1989
Decided On : 06/28/2005

Advocates Appeared:
BINAY KUMAR, CHITRANJAN SINHA, KISHORE KUMAR SINHA, PRADHAN SHAILESH KUMAR SINHA, PREM KUMAR JHA, R.N.SAHAY, RAJESH KUMAR, Rajesh Lala, RAM SHANKAR PRADHAN, RAM SHANKAR PRADHAN PRADHAN, SUBODH KUMAR

Withdrawal of arbitration suit without reserving the right to sue afresh bars the claimant from claiming the amount in a subsequent suit.

Headnote:

Construction Contract Dispute - Indian Partnership Act, Public Demand Recovery Act - Agreement Nos. 4, 7, 5, 6 of 1978 - Title Suit No. 83 of 1979 - Ext. 5, 3, 2 - Order 23 Rule 1, 4

Fact of the Case:

Plaintiff entered into construction contracts with defendant, completed work, but final payment and security money were withheld. Dispute arose over completion of work and payment. Plaintiff filed suit seeking payment. Defendant claimed non-completion of work and abandonment of construction.

Finding of the Court:

Court found that plaintiff partially completed the construction work under agreement Nos. 4 and 7 of 1978, but failed to complete work under agreement Nos. 5 and 6 of 1978. Court denied relief to plaintiff No. 2 due to non-registration of the firm. Court also held that plaintiff's withdrawal of arbitration suit without reserving the right to sue afresh barred them from claiming the amount. Bank was not restrained from recovering dues.

Issues: Suit maintainability, cause of action, limitation, misjoinder of parties and causes of action, exemption from court fee, restraining bank from recovery, completion of construction work, entitlement to decree, relief sought by plaintiffs.

Ratio Decidendi: Plaintiff's withdrawal of arbitration suit without reserving the right to sue afresh barred them from claiming the amount. Non-registration of the firm barred relief to plaintiff No. 2. Bank could not be restrained from recovering dues under the Public Demand Recovery Act.

Final Decision: Appeal in favor of defendant allowed, appeal by plaintiff dismissed. Judgment and decree in money suit set aside with modification that plaintiff No. 1 is not entitled to any relief.

Judgment :

( 2 ) THE case of the plaintiffs in brief is that plaintiff No. 1 Santu Prasad Das took contract work for construction of office building and N. H. S. quarters in Chitra colliery from the defendant No. 1 Eastern coal Field Limited and entered into agreement as per agreement No. 4 and 7 of 1978. It is alleged that during the subsisting period of the contract work, there was some dispute as to the enhancement of rate and other damages and to settle the matter, an arbitration case vide Title Suit No. 83 of 1979 was filed in the learned Court below and during the pendency of the arbitration proceeding, the plaintiff No. 1 who is appellant here, completed the aforesaid work to the satisfaction of the defendant No. 1 and constructed buildings were taken in possession by defendant no. 1 respondent and plaintiff no. 1 was paid running accounts bills but final bill and security money were not paid to him for which, he claims to be legally entitled. It is further alleged that defendant No. 1 represented to the plaintiff that the matter of payment will be settled if the plaintiff takes up the work at Lalmatia Colliery and entrusted the contract work for the construction of N. H. S. quarters at Lalmatia to plaintiff No. 1 for himself and on behalf of the plaintiff No. 2 vide agreement Nos. 5 and 6 of 1982 and the plaintiff accordingly constructed the building at Lalmatia Colliery also under the aforesaid contract, for which he was paid running account bills of Rs. 10,47,121. 99 paise. It is further alleged that while construction was going on, some dispute of public nature arose there and the public dismantled the boundary wall of N. H. S. quarters and work was ultimately stopped. It is further alleged that after settlement of the matter, the plaintiffs were noticed by the defendant to complete the balance work and the plaintiff immediately completed the work.

( 3 ) IN arbitration proceeding vide Title suit No. 83 of 1979, the arbitrator made an award of Rs. 1,59,560/- in favour of the plaintiff No. 1 which caused annoyance to the defendant No. 1 and, the plaintiff no. 1 submitted to the Court to pass decree of the said amount against the defendant No. 1 but defendant No. 1 objected to the same. The plaintiffs submitted bills completed N. H. S. quarters to the defendants and demanded payment of final bill and earnest money but on account of the aforesaid award, the defendants withheld the payments. It is further alleged that defendants assured the plaintiffs that entire arrears will be cleared off if the plaintiff withdraw his petition for passing the decree against the defendant No. 1 and accordingly defendant no. 1 withdrew the petition. Thereafter a joint measurement was taken under the instruction of the General Manager of Lalmatia Colliery and the bills were passed and kept in the office since january 1985 but has not been paid to the plaintiff till today. On the other hand, State bank of India, Deoghar arbitrarily and illegally filed a false requisition for certificate and the same is pending before the District certificate Officer and the Bank has further illegallyfiled a false requisition for certificate and the same is pending before the District certificate Officer and the Bank has further illegally forfeited the deposits of the relations of the plaintiffs and without making defendant No. 1 a party, is persuading issuance of attachment of immoveable properties of plaintiffs. Thereafter plaintiffs filed a petition before C. W. J. C. No. 627 of 1987 before the Patna High Court and the Court was pleased to direct the defendant No. 1 to look into the grievance of the petitioner and inform them why payment in respect of their bills have been withheld. It is further alleged that Advocates notice was also given to the defendant No. 1 but to no effect. Defendant no. 2 misrepresented to the plaintiff No. 1 and fraudulently induced him to withdraw the award case putting him to a loss of Rs. 1,59,560/- and further withheld the f













Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top