MANJERI MUNICIPALITY Vs. MOHAMMED ALI

JUDGEMENT

(1.) The respondent filed O.S. No. 15/2014 on the file of Sub Court, Manjeri against the appellant, the Manjeri Municipality for realisation of money. The respondent/plaintiff entered into a contract with Manjeri Municipality for construction of a Bus Stand-cum-Shopping Complex. The construction work was completed. According to the plaintiff, a sum of Rs. 2,10,76,203/- is due from the appellant/defendant Municipality on account of contract work. The suit was filed for realisation of the said amount. The appellant/defendant contended in the written statement that the Municipality could not pay the balance amount payable to the plaintiff on account of paucity of funds. The Municipality also disputed the rate of interest. It was stated that a total sum of Rs. 5,47,00,771/- was paid to the plaintiff. During the pendency of the suit, a cheque for Rs. 30 lakhs was issued to the plaintiff. The balance payable is only Rs. 1,16,28,559/-. It is stated in the written statement that the auction to lease out the shop rooms in the building belonging to the Municipality was not fully successful and therefore, the Municipality could not raise funds to discharge the liability to the plaintiff.

(2.) The plaintiff filed I.A. No. 373/2014 under Rr. 1 and 2 of O. XXXIX of the Code of Civil Procedure for an injunction restraining the defendant from releasing any amounts in respect of the construction works, which were completed after 4.8.2012. In the affidavit, the plaintiff stated that even when the liability to the plaintiff was not discharged, the defendant invited tenders for other works and those contractors were paid amounts. Only since the other contractors were paid amounts, the Municipality could not discharge the liability towards the plaintiff. If the defendant is restrained from releasing any amount in respect of the new construction works for a period of six months, the amounts due to the plaintiff could be easily discharged by the defendant.

(3.) The defendant Municipality contested the application for temporary injunction and contended that the application is not maintainable. It was stated that the defendant would be able to discharge the amount due to the plaintiff within nine months. Being a local Self Government institution, the Municipality has to undertake the health related activities, waste management, water supply, providing street lights and other important matters. If an injunction is granted against the Municipality, the activities of the Municipality would come to a stand still.