STATE OF ANDHRA PRADESH Vs. N.V. BHASKAR

JUDGEMENT

(1.) Defendants in O.S. No. 5 of 2002 on the file of IV Additional District Judge, Kurnool, filed this appeal assailing the decree dated 20.04.2005 in O.S. No. 5 of 2002. The sole respondent herein filed the suit for recovery of sum of Rs. 1,03,28,587/- with interest at 12% p.a. from the date of filing of the suit till the date of realization. The respondent is a special class contractor. The appellant invited tenders in the month of December, 1990 for the work of formation of earthen dam for Alaganuru balancing reservoir at Alaganur village, Midthur Mandal of Kurnool District from KM 1.000 to KM 2.000. The respondent emerged as a successful tenderer. An agreement was entered into on 02.12.1991. The value of the work was 1,93,65,579/-.

(2.) The respondent filed the suit initially claiming a sum of Rs. 38,57,505/- under different heads. According to him the appellants were under obligation to handover possession of the site free from encumbrance and on account of their failure to do so he could not start and complete the work within the stipulated period. It was alleged that the process to acquire the land was not completed even by the time the suit was filed and that the farmers in the locality hampered the work, by starting agitation. He pleaded that he kept men and machinery ready ever since he was declared as the highest bidder and incurred house expenditure for it. Another complaint was that the appellants did not arrange for inspection of the site by Geologist.

(3.) The respondent pleaded that though the delay and default was on the part of the respondents, they have forfeited the EMD as well as the further security deposit and that a sum of Rs. 4,00,000/- was not paid for the works, that were executed. He claimed that substantial extra expenditure was incurred for execution of work, beyond the agreement period. At the subsequent stage the plaint was got amended and an increased amount was claimed.