POLIMERA THALUPULU Vs. PANCHAYAT BOARD THUMPALA

JUDGEMENT

(1.) This is a suit filed by the Panchayat Board, Thumpala, for recovery of Rs. 2,527-73 nP. which includes interest at the rate of 2 percent, per mensem from the date of default.

(2.) The plaintiff's case is that the Thumpala Panchayat Board auctioned on 28th March, 1955, the right to collect cart stand fees in the Panchayat area for the year 1955-56. The terms and conditions of the auction were published in the District Gazette, dated 23rd March, 1955. The defendant was the highest bidder, having bid for Rs. 4,000 and the auction was confirmed in his favour. As per Condition 5 of the auction, the defendant made an initial deposit of Rs. 1,358 towards the bid amount. As per the conditions the bid amount was to be paid in equal monthly instalments, the deposit being adjusted towards the last monthly instalment payable. The conditions also provided that in default the defendant was liable to pay interest at 2 percent, per mensem. The defendant after making the initial deposit of Rs. 1,000 25th July, 1955, failed to pay the balance of Rs, 1,642 which together with interest is now claimed in the suit.

(3.) The defendant resisted the suit on several grounds inter alia that he discharged his liability by paying the entire amount, and in the alternative that the suit was not maintainable as no registered agreement was executed by him in favour of the Pan- chayat Board as provided for by Condition 10 of the Conditions of sale Exhibit A-6, and that the rate of interest at 2 per cent, is penal and he is liable to pay only a reasonable rate of interest.