KOTHARI AND ASSOCIATES Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Both these appeals are directed against the common judgment and decree dated 04.04.1989 passed by the learned Judge, City Civil Court, Ahmedabad in Civil Suit No.3013 of 1982.

(2.) Being aggrieved by the impugned judgment and decree, the plaintiff and the defendant, both have preferred separate appeals. As both the appeals relate to the same judgment and order, the same are disposed of by this common judgment. For the sake of convenience, the parties shall be referred to as per their original status in the lower court.

(3.) The facts leading to filing of these appeals are as under: that the plaintiff is a registered partnership firm, inter alia, engaged in the business of Engineers and Contractors. The defendant, through its Executive Engineer, Irrigation Division, Ahmedabad invited tenders for work of providing lining of M.F.C. Ch.5550 to 9937 and Branch No.1 Ch.O to 1524 of Moti Fatehwadi Canal. The plaintiff filed its tender in response to the tender notice issued by the defendant and quoted Rs.12,56,449/- for the said work. The tender filed by the plaintiff being lowest, was accepted by the defendant. Thereafter the plaintiff and the defendant entered into an agreement and work order was issued by the defendant to the plaintiff on 10.01.1978, with a specific stipulation that the work was to be completed by the plaintiff within 18 months i.e. on or before 09.07.1978. The plaintiff and the defendant entered into a contract, inter alia, providing for mutual performance on the part of both the parties i.e. to say reciprocal contractual obligations. The plaintiff paid an amount of Rs.18,320/- as security deposit and thereafter further amount of Rs.18,320/- was deducted by the defendant from its running bill to make up the security deposit of Rs.36,640/-.