LAWS(DLH)-2006-4-30

DELHI DEVELOPMENT AUTHORITY Vs. VIJAYA BUILDERS

Decided On April 27, 2006
DELHI DEVELOPMENT AUTHORITY Appellant
V/S
VIJAYA BUILDERS Respondents

JUDGEMENT

(1.) The plaintiff filed a suit for recovery of Rs.3,54,110.90/- against the defendants. This suit was filed on the premise that the work allotted by the DDA for construction of site office Phase-II in terms of letter dated 10.1.1994 and agreement dated 17.1.94 had not been executed and completed by the defendants. According to the plaintiff, the defendants were required to complete the work by 19.8.94. The actual cost of work completed by the defendants till December, 1996 was Rs. 8,15,078/- and that was about 47% of the tender cost. The defendants in the suit slowed down the process of work on the ground that the final bill was not paid. The plaintiff issued a show cause notice to them but the defendants did not reply and having taken the measurement and rescinded the contract on 22.1.99, the present suit was filed for recovery of the damages suffered by the plaintiff on 10.4.02.

(2.) This suit was contested by the defendants on merits who also took up the objection of limitation. In fact, the defendants filed an application under Order 7 Rule 11 of the CPC stating that the suit was barred by time and as such, the plaint was liable to be rejected and the suit dismissed being barred by law. This application in turn was contested by the plaintiff. According to the plaintiff, the suit had been filed within time as it had rescinded the contract on 22.1.99 and the measurements were taken subsequently, therefore, the suit was within time.

(3.) The learned trial court while allowing the application of the defendants dismissed the suit upon recording the following findings:-