(1.) Challenging the order of dismissal (12-12-2007) of the suit in O. S. No. 64 of 2005 on the file of Additional District Judge (Fast Track Court No. 2), Salem, Plaintiff has filed the present appeal.
(2.) Appellant is plaintiff and respondents are defendants. Appellant filed the suit for recovery of Rs. 39,96,800/- with subsequent interest at 24% per annum on Rs. 24,00,000/-. According to the appellant, he is a registered Contractor and had been awarded with a contract work with a periodical renewal of the National Highways Road No. 7 between K. M. 66/0 to 61/0. 62/0 tio 64/0 on Bangalore to Salem Madurai Section by the 2nd respondent. For the said purpose, an Agreement dated 14-2-2001 for the contractual value of Rs,. 38,55,299/- had been entered into between the parties. As per the terms of Agreement, appellant had to complete the work within four months from the date of handing over the road to him on 7-3-2001. Accordingly, appellant had completed the entire work satisfactorily on 1-7-2001 and the road was duly handed over to the department on 1-7-2001. The final bill was also submitted by him on the same day. But the 4th respondent had failed to arrange settlement of the final bill. Appellant had sent reminders to the respondent requesting to settle a total sum of Rs. 24,00,000/- including 21-1/2 withheld amount by the department. Appellant had completed the contract work by borrowing amount at huge interest from financing agencies and till now he had paid more than Rs. 7,00,000/- by way of interest alone for the amount that is illegally withheld by the department. Being a commercial transaction, from 1-9-2001 i.e. after expiry of two months from the date of submission of final bill dated 1-7-2001, Appellant is entitled to interest at 24% per annum on Rs. 24,00,000/-. Hence, the suit.
(3.) Resisting the said suit, 4th respondent/ 4th defendant filed a written statement, admitting the Agreement of contract entered into between them. According to him, duration of period for completing the work commenced from 14-2-2001 and not from the date of 7-3-2001. Appellant had completed the work on 28-7-2001 only. Further, appellant did not submit the final bill on 1-7-2001. It is not the duty of appellant to submit bill to the respondents but it is the duty of Assistant Divisional Engineer to prepare the bill and to forward the same to the Divisional Engineer, National Highways. Actually the contract work is not a commercial transaction. It is a public work done by the Government for public road transport convenience, Hence, Appellant is not entitled to claim any interest at the rate of 24% per annum. Thus, he prayed for the dismissal of the suit.