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

2022 Supreme(Mad) 660

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Senthilkumar Ramamoorthy, J.
P.P. Thomas, Government Contractor, Kerala – Plaintiff
Versus
The State of Tamil Nadu, Rep. by the Secretary to the Government, Chennai & Another – Defendants
Civil Suit No. 190 of 2012 & Application Nos. 6042, 9635 and 9636 of 2018
Decided On : 13-07-2022

Advocate Appeared:
For the Plaintiff :Babu Thomas, K.F. Manavalan, K. Bijesh Thomas, Advocates.
For the Defendant :R. Shunmugasundaram, Advocate General & A. Edwin Prabakar, Special Government Pleader (CS)

Headnote:(A) Indian Contract Act, 1872 - Sections 55 and 70 - Breach of contract - Claim regarding escalation of costs - Court found that the defendants committed breach by delaying approvals and the contractor is entitled to compensation for escalation during the extended period, based on revised PWD rates. (Paras 1, 46, 61)

(B) Limitation - The suit is filed within the limitation period considering the rejection of claims was only communicated later, thus entitlement to claim started thereafter. (Paras 28, 30)

(C) Jurisdiction - The Court held that it has territorial jurisdiction to entertain the suit since the cause of action arose within its precincts. (Paras 36, 11)

(D) Claims for idling of machinery due to delayed approvals are partly allowed, establishing that non-performance was due to defendants' prevention. (Paras 53, 61) (E) Penalty imposed on the contractor for purported slow progress deemed invalid as delays were largely attributable to the defendants. (Paras 58, 61)

JUDGMENT :

(Prayer: Civil Suit is filed under Order IV Rule 1 of the O.S Rules read with Order VII Rule 1 of the C.P.C. 1908, praying to pass judgment and decree in favour of the plaintiff seeking (A) for a declaration that the Defendants committed breach of contract under Agreement No.8/SE/PDC/1988-89 and prevented performance and completion of the work within the period stipulated in the agreement, which expired on 21.06.1992 and that the rejection of the claims for payment of the unpaid value of the works carried out and other amounts due to him notified on 11.07.1993 by the First Defendant on 05.06.1996 and 03.07.1993 is illegal, unjustified & invalid and consequently, the First Defendant is liable for payment at the market rates prevailed for the works delayed beyond 21.06.1990, by disgorging the unjust enrichment obtained by non-payment of the same, to compensate the losses caused to the Plaintiff, to restore his position ante; (B) for a declaration that the penalty of Rs.80,000/- (Rupees Eight Thousand only) imposed on the Plaintiff alleging slow progress is illegal, unjustified & invalid and consequently, the First Defendant is liable to compensate the loss by refund of the amount illegally recovered along with interest thereon at 18% p.a. from the date of suit till realization; (C)directing the First Defendant to pay Rs.2,60,75,350/- (Rupees Two Crore Sixty Lakhs Seventy Five Thousand Three Hundred and Fifty only), towards unpaid cost of Rs.39,900 cum of broken stones obtained by blasting of hard rock in the Reserved Forest in the Kerala State on obtaining permission for the same on 23.12.1989, in liew of the buffer stock of blasted stones in the dump yard near the Vents of the Additional Regulator of the Periyar Dam, which was washed off in the flood as notified at Rs.64,22,500/- including interest thereon at 18% p.a. till date of payment by disgorging the unjust enrichment obtained by the Defendants; (D) directing the First Defendant to pay Rs.4,31,04,780/- (Rupees Four Crores Thirty One lakhs Four Thousand Seven Hundred and Eighty only), towards unpaid market value of works carried out between 21.07.1990 and 23.05.1994 notified a Rs.1,06,16,941/- including interest thereon at 18% p.a. From 23.05.1994 onwards till 23.09.2011 and payable with interest at the same rate till date of payment; (E) directing the First Defendant to pay Rs.94,55,740/- (Rupees Ninety Four Lakhs Fifty Thousand Seven Hundred and Forty only), towards unpaid hire/idling charges of the machinery items valued Rs.68,00,000/- brought to the site which remained idle due to delayed re-construction of Ghat road from Vallakkadavu to Dam site after the flood occurred notified at Rs.17,000/day for 137 days between 24.07.1989 and 28.12.1989 at Rs.23,29,000/- including interest thereon at 18% from the date of plaint till realization; (F) directing the First Defendant to pay Rs.3,24,000/-(Rupees Three Lakhs Twenty Fourt Thousand and Eight Hundred only) by way of refund of penalty of Rs.80,000 illegally imposed, including interest thereon at 18% from the date of plaint till realization; (G) directing the First Defendant to pay Rs.47,800/- (Rupees Forty Seven Thousand and eight Hundred only) by way of refund of compounding fee paid to Wild Life Warden, Thekkady in Vallakkadavu Forest range in O.R.No.50 of 1989 for an offence under the Forest Act registered against the Executive Engineer, Assistant Executive Engineer, Assistant Engineer, Plaintiff and workman for blasting of hard rock in Reserved Forest in Kerala including interest on Rs.10,000/- at 18% p.a. from 07.08.1990 till 07.12.2011 and payable with interest at the same rate till realization; (H) directing the First Defendant to pay Rs.76,08,800/- (Rupees Seventy Six Lakhs Four Thousand and Eight Hundred only) towards unpaid hire/idling charges of cement concrete weigh batching plant and stone crusher

                  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