CS(OS) 1530/2003 and CS(OS) 1173/2004 Page 1 of 35

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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Date of Decision: 11.07.2012

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CS (OS) 1530 of 2003

Dr.(Ms.) V.L. Bhargava and Anr.

… Plaintiffs

versus

Shri Balwant Singh and Anr.

… Defendants

Advocates who appeared in this case:

For the Plaintiffs

: Mr.Sudhanshu Batra, Sr. Advocate with

Mr.Bhuvan Gugnani, Advocate,

For the Defendants : Mr. Harish Gupta, Advocate

AND

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CS (OS) 1173 of 2004

(Earlier suit No. 209 of 2003 before transfer)

Shri Balwant Singh

…Plaintiff

versus

Dr.(Ms.) V.L. Bhargava and Anr.

…Defendants

Advocates who appeared in this case:

For the Plaintiff

: Mr. Harish Gupta, Advocate

For the Defendants

: Mr.Sudhanshu Batra, Sr. Advocate

with Mr.Bhuvan Gugnani, Advocate,

CORAM:

HON'BLE MR. JUSTICE ANIL KUMAR

2012:DHC:4206

CS(OS) 1530/2003 and CS(OS) 1173/2004 Page 2 of 35

ANIL KUMAR, J.

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This judgment shall dispose of the suit of Dr. Bhargava & Anr.,

hereinafter referred to as „owner's‟/Plaintiff; suit for recovery of

Rs.22,69,894.50 with pendente lite and future interest at the rate of

18% per annum and the cross suit of Balwant Singh, hereinafter

referred to as „Builder‟/Defendants for recovery of Rs.2,67,150/- with

pendent lite and future interest at the rate of 24 % per annum on the

principal amount from 1.5.2003 till the decision of the suit.

CS(OS) No.1530/2003

1. The owners contended that plaintiff No.1 is a well known

gynecologist and plaintiff No.2 is a retired Army Officer and brother of

plaintiff No.1. They jointly purchased a land measuring 743.15

sq.mtrs. bearing No.49 on Pine Drive in Malibu Town, District Gurgaon,

Haryana, by a registered sale deed dated 29^th March, 2000. The

physical possession of the plot was handed over on 5^th May, 2000.

After

getting

the

possession,

the

plaintiffs

contemplated

the

construction of a residential house on the said plot and, therefore, they

arranged for a loan to the tune of Rs.27,00,000/- from HDFC Limited.

2. For the purposes of construction, a contractor was also required

and since defendant No.1, Shri Balwant Singh, had been doing contract

2012:DHC:4206

CS(OS) 1530/2003 and CS(OS) 1173/2004 Page 3 of 35

job for Sita Ram Bhartia Institute of Science and Research where

plaintiff No.1 was working as a Senior Consultant, he was asked to

quote his rates for material and labor, so that the construction could be

carried out. According to the owners, the builder/defendant No.1 gave

an item-wise list of rates for construction of structure of the proposed

house. The rates quoted by the defendant No.1 were accepted and he

also promised to complete the construction by April 2002. The

defendant No.2, is the son of defendant No.1 and he also works with

him and he also acted as an agent of defendant No.1, his father, from

time to time.

3. The plans for the construction of house were sanctioned on/or

about 19^th June, 2000 and initial working drawings were handed over

to defendant No.1 on 27^th June, 2000. On 17^th July, 2000, the plaintiff

had requested for the advance payment for purchase of stores and,

therefore, a sum of Rs.4,00,000/- was paid by an account payee cheque

drawn on HDFC Bank, New Delhi. The structural drawings for the

basement were submitted to the defendants by M/s. Space Combine

on/or about 15^th August, 2000 and excavation was completed by the

defendants for construction in the first week of October, 2000.

4. During the construction, defendant No.1 requested for more

funds and consequently the amounts were paid in three installments by

2012:DHC:4206

CS(OS) 1530/2003 and CS(OS) 1173/2004