MALLIKARJUNA RAO Vs. E E NIMAL

JUDGEMENT

(1.) This writ petition raises an interesting question of law regarding rule of appropriation by State in respect of claim for damages for a breach of contract.

(2.) The petitioner is an Engineering Contractor and the Superintending Engineer, Irrigation Circle No.II accepted his tender for the work of restoring Gurudev Talab near Yamnikunta village in Utnoor taluk of Adilabad district (hereinafter called the first contract) and started work on 1-12-72 and according to him he completed the work worth about Rs. 3,50,000/-. As the Department did not finalise the amounts payable to him, the matter was referred to the arbitration on 20-2-80. According to him he is entitled to Rs 35,000/- and also for damages of Rs. 57,000/- in respect of this contract work. The above work is under the supervision and is in the circle of the lst respondent, the Executive Engineer (I&P) Department, Nirmal Division Kadam.

(3.) The petitioner is also a contractor in respect of a different work for construction of an anieut across Epoor vagu, Gundla Singaram village, Suryapet taluk, Nalgonda district (hereinafter called the second contract) under the 2nd respondent the Executive Engineer (I&P) Department, I.B, Division, Nalgonda. In respect of that work, final bills were prepared and according to the petitioner he is entitled to Rs. 45,000/- towards the work done and also for refund of Rs. 85,000/- towards the earnest money.