DWARAKA DAS Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) In response to the tenders invited by the respondent-State, the appellant herein was allotted the work for the construction of a hostel for 100 boys at Polytechnic Ujjain for which agreement (Ex. P. 22) was executed between the parties on 26th December, 1960. The entire work was required to be completed within 29 months with further condition that 1/4 of the work was to be completed within 5 months, half the work to be completed within 10 months and 3/4 work was to be completed within 15 months. The work order was issued to the appellant on 26th December, 1960 who started construction on 28th December, 1960. The Superintending Engineer is alleged to have obstructed the progress of the work with the result that the work could not be completed within the time schedule. The contract executed between the parties was rescinded by the respondents vide letter dated 19-6-1961 on the ground that the appellant had not completed even 10 per cent of the work despite lapse of more than 9 months. The appellant however, contended that the termination of the contract was in breach thereof. He claimed Rs. 20,000/- as damages for breach of contract besides claiming other amounts payable by the respondent to him. Suit for the recovery of Rs. 32,000/- filed by the appellant was decreed with a direction that the appellant would also be entitled to future interest @ 6 per cent per annum.

(2.) After the decree of the trial Court the appellant filed an application under S. 152 of the CPC praying for awarding of interest from the date of the suit till the date of the decree by correcting the judgment and decree on the ground that non awarding of interest pendente lite was an accidental omission. The trial Court allowed this application and directed the correction of the judgment and decree by awarding interest pendente lite.

(3.) Aggrieved by the judgment and decree of the trial Court, the respondent-State filed the First Appeal No. 86 of 1973 and against the order passed in application under S. 152, Revision Application No. 145 of 1974. The High Court vide the order impugned herein partly allowed the appeal by holding the respondents-State liable to pay only a sum of Rs. 4,783.33 to the plaintiff with interest at the rate of 6 per cent per annum. Civil Revision No. 145 of 1974 was allowed and the order of the trial Court granting interest pendente lite was set aside.