SCL INFRATECH LTD Vs. V.R. CONSTRUCTIONS

JUDGEMENT

(1.) This appeal is filed questioning the judgment and decree dtd. 8/12/2017 passed in O.S.No.83 of 2017 by the Commercial Court-cum-Principal District Judge, Kurnool.

(2.) Sri B.Adinarayana Rao, learned senior counsel appeared for the appellant, whereas Sri N.Subba Rao, learned senior counsel appeared for the respondents.

(3.) Learned senior counsel for the appellant essentially argued that the judgment of the lower Court is against the settled principles of law. He points out that in the contract between the appellant and the 1st respondent, there is no condition for payment of escalation charges. In the parent contract between the appellant and the State, there is an escalation clause which is not, however, included in the agreement between the plaintiff and defendant No.1. It is also pointed out that the pleading about the escalation in the suit is absolutely lacking and that the trial Judge committed an error in awarding escalation. It is, according to him, a matter of contract and the Court cannot award escalation on the grounds of equity or otherwise. He also points out that the claim made is essentially for alleged balance due, whereas escalation was awarded. He also argues that the documents filed do not amount to evidence in the eye of law and merely on the basis of some consolidated and typed statements, huge sums of money were awarded without considering the fact whether these documents actually constitute evidence or not. He also points out that in the ultimate conclusion, learned Judge did not discuss the quantum of the claim or about the manner in which it was proved. Merely on the ground that the main parent agreement contained an escalation clause and the appellant received the escalation from the State Government, the trial Judge awarded the amounts. He submits that this is totally contrary to law.