ISHWAR DAYAL HINGWASIA Vs. MUNICIPAL BOARD RATH

JUDGEMENT

(1.) This appeal hag been instituted by the defendants against whom a suit has been filed by the Municipal Board, Rath for the recovery of a sum of money on the basis of the contract which was given to the defendant in a public auction for the recovery of Tehbazari. The contract admittedly was taken by the defendants for Rs. 37,800/- but they did not pay part of the contracted money for the recovery of which this suit has been filed.

(2.) The defendants contested the suit and apart from other pleas they contended that the contract in their favour was invalid and could not be enforced by the plaintiff. The contract was invalid as the same was not registered. Apart from this, the defendants also contended that due to certain lapses on the part of the plaintiff a loss of Rs. 5,500/- was caused to the defendant and for this reason the plaintiff was not entitled to claim- any amount. The suit was decreed by the trial court and the appeal by the defendants also met the same fate in the lower appellate court. Hence, the defendants have come up before this Court in second appeal.

(3.) A short point has been taken before this Court and it was to the effect that there was no valid contract between the parties as required under Section 97 of the Municipalties Act. The plaintiff, therefore, was not entitled to enforce the said contract and the lower courts had erred in granting the relief to the plaintiff under Section 66 of the Contract Act.