S.GANESAN Vs. ERODE CORPORATION

JUDGEMENT

(1.) The appeal suit is filed, challenging the judgment and decree dated 30.06.2010 passed in O.S.No.55 of 2008. The defendant is the appellant in the First Appeal. The respondent plaintiff is Erode Corporation, who instituted the suit before the Trial Court.

(2.) The respondent plaintiff filed the suit for recovery of money. The appellant defendant was the successful bidder in the auction conducted by the respondent plaintiff for collecting the rent for the years 2004-2005 for Nethaji Daily Market, R.K.V.Road, Erode for a sum of Rs.50,55,555/-. The term of the appellant defendant commenced from 01.06.2004. Thus, he was permitted to collect the rent for the period from 01.06.2004 to 31.03.2005 and proportionately the auction amount was reduced to Rs.42,12,960/-. Apart from the auction amount, the appellant defendant has to pay Rs.10,41,750/- towards the salary for the cleaning workers, Rs.10,000/- as auction deposit for electricity and Rs.1,00,000/- as security deposit. Thus, the appellant defendant has to pay a total sum of Rs.53,64,710/- to the respondent plaintiff. After adjusting the payments under various heads, the appellant defendant was continue to pay a sum of Rs.13,90,061/- to the respondent plaintiff. The respondent plaintiff made repeated demands and the final notice was issued on 17.04.2006. The defendant failed to pay the demanded amount and filed W.P.No.24470 of 2006, challenging the demand notice dated 17.04.2006. The said writ petition was dismissed by the Hon'ble High Court on 30.09.2006. Thereafter, the appellant defendant has filed a Civil Suit in O.S.No.68 of 2007 for a permanent injunction and the same was pending during the relevant point of time. Under those circumstances, the respondent plaintiff instituted the suit for recovery of the due amount of Rs.13,90,661/- with interest at the rate of 18% per annum from the date of default.

(3.) The appellant defendant denied the averments in the plaint by stating that he was a successful bidder and entrusted to collect rent for the years 2004-2005 for Nethaji Daily Market and the term of agreement commenced with effect from 01.06.2004. The appellant defendant denied that the due amount as demanded by the respondent plaintiff is false. The appellant defendant admitted that he filed a writ petition and the same was dismissed by the High Court. The O.S.No.68 of 2007 filed for an injunction, was decreed in favour of the defendant. The appellant states that there was no contract for payment of interest and the occupants of the market refused to pay the rent and they moved the Court, disputing the rent fixed by the respondent plaintiff. In spite of the loss, the appellant defendant paid a sum of Rs.1,36,800/- to the respondent plaintiff. The allegation of the appellant defendant is that the plaintiff Corporation did not assisted the defendant to collect the rent amount from the vendors. The defendant appellant engaged casual labourers and on account of the non-cooperation on the part of the respondent plaintiff, the appellant defendant sustained monetary loss and therefore, requested the trial Court to dismiss the suit.