C O M M O N J U D G M E N T

The defendant in the suit is the appellant in these second appeals. The respondent herein filed a suit for recovery of money towards cost of the construction made by the respondent under the construction agreement dated 10.02.2006. The appellant herein filed a counter claim for a sum of Rs.3,42,000/- towards cost of the balance construction work and loss of rentals. The trial Court dismissed the suit filed by the respondent and decreed the counter claim filed by the appellant. Aggrieved by the same, the respondent/plaintiff preferred two appeals. The first Appellate Court allowed the appeals and decreed the suit in part by directing the appellant/defendant to pay a sum of Rs.70,000/- together with interest at the rate of 9% to the respondent. The counter claim preferred by the appellant was dismissed by reversing the findings of the trial Court. Aggrieved by the same, the appellant is before this Court.

2. According to the respondent/plaintiff he entered into a construction agreement with appellant on 10.02.2006 under Ex.A1 for construction of flat with a built up area of 1100 sq.ft for consideration (cost of construction) of Rs.11,50,000/-. It was agreed the construction of flat shall be completed within four months with a grace period of one month. It was claimed by the respondent that the appellant herein insisted certain additional work like marble flooring for bed rooms and kitchen, granite skirting etc. It was also claimed that the respondent incurred certain additional expenses towards obtaining TNEB service connections and miscellaneous charges for planning permission. It was further claimed by the respondent that the appellant paid a sum of Rs.10,40,000/- but refused to release the balance sum of Rs.1,10,000/- as per the agreement. He also failed to pay a sum of Rs.45,000/- towards additional expenses incurred by respondent. Thus, the respondent claimed that the appellant was liable to pay a sum of Rs.1,10,000/- towards balance of consideration and Rs.45,000 towards cost of additional works done by the respondent. The respondent sent a bill dated 06.06.2007 calling upon the appellant to settle the amount. Since there was no favourable response, issued a legal notice dated 15.03.2009 calling upon the appellant to pay a sum of Rs.5,00,000/- towards unpaid construction cost, additional cost of construction and for delayed payment. The appellant sent a reply notice dated 27.10.2009 making frivolous allegations. In these circumstances, the respondent was constrained to file a suit for recovery of money.

3. The appellant/defendant filed a written statement denying the various allegations made by the respondent. It was claimed by him that inspite of expiry of the time limit fixed for completion of project, respondent failed to complete the construction and abandoned project without finishing the work as per the construction agreement. The appellant claimed that as many as fourteen works were not completed by the respondent and the appellant incurred a sum of Rs.1,50,000/- towards cost of completing the pending works. It was also claimed by the appellant that due to delay caused by the respondent in finishing the work, the appellant incurred rental expenditures to the tune of Rs.1,92,000/- and the said amount should be paid by the respondent. It was claimed by the appellant, he obtained loan for construction of flat and was liable to make periodical payments towards amount borrowed, the respondent did not complete the work within the agreed time and hence he was liable for expenses incurred by the appellant. On these allegations, the appellant raised a counter claim for a sum of Rs.3,42,000/- against the respondent (Rs.1,92,000/- towards loss of rentals and Rs.1,50,000/- towards cost of completion of unfinished works undertaken by the appellant).

4. Before the trial Court, the respondent/plaintiff was examined as PW.1 and ten documents were marked on his side as Exs.A1 to A10. On behalf of the appel