K P SOMAN Vs. BOARD OF TRUSTEES OF PORT OF MORMUGAO, MORMUGAO, GOA ; DEPUTY CONSERVATOR, MORMUGAO PORT TRUST, MORMUGAO, GOA

JUDGEMENT

(1.) The Petitioner in this Miscellaneous Application prays for an order that the Respondents may be directed to pay jointly or severally such reasonable remuneration as determined by this Court for the salvage work or services rendered by the Petitioner to the Respondents. Secondly, the Petitioner prays for a refund to the Petitioner of the bank guarantee to the tune of Rs.65,000/- and Rs. 10,000/- given by the Petitioner.

(2.) The facts relating to the present Application, briefly stated, are that in April 1987, the Petitioner and Respondent No.1 entered into an agreement for carrying out the removal of a wreck at Vasco Bay and dumping the same at Berth No. 10. The consideration for the work to be carried out was settled at Rs. 14,97,000/-. One of the stipulations of the agreement was that the work was to be completed within a period of 35 weather working days. The agreement also stipulated a "no cure, no pay" basis.

(3.) During the Second World War, an old cargo vessel was sunk by the British and the vessel was abandoned without any hope or intention of recovery in the tidal waters of Mormugao Harbour. The Petitioner was awarded the work in view of the fact that his tender was the lowest among all. The petitioner furnished a bank guarantee in the sum of Rs.65,000/- as security deposit. The Petitioner also deposited as earnest money a sum of Rs. 10,0007- by way of bank guarantee, which was later converted into a security deposit