INDIA STEAMSHIP CO LTD Vs. HINDUSTAN SHIPYARD LTD

JUDGEMENT

(1.) This Appeal is filed against the Judgment and decree passed in O.S. No. 296/82 on the file of Principal Subordinate Judge, Visakhapatnam.

(2.) The suit was filed for recovery of Rs. 44,10,000/- towards compensation for the loss sustained by plaintiff-Company as the handing over of the ship after causing repairs was delayed by the defendant for 70 days i.e., from 27-12-1979 to 7-3-1980 at Rs. 63,000/- per day. They claimed interest at the rate of 19% per annum and also costs of the suit.

(3.) The case of the plaintiff is as follows:- The ship of the plaintiff's company named "M.V. Indian Tribune" sustained damage when it met with an accident in Bombay in 1979. It was handed over to the defendant i.e., M/s. Hindustan Shipyard Ltd., Visakhapamam for necessary repairs and to make it seaworthy again. The repairs should be effected within a stipulated and reasonable time of 57 days. The starting of the period is reckoned from completion of survey by the Local Classification Surveyors and after obtaining their recommendations. Time was essence of the contract. Payment will be made by the plaintiff on presentation of the bills accompanied by certificates and details of work done. The defendant should also do within the said time all incidental works as may appear necessary or to be advised by the plaintiff during the progress of work. On or about 31-10-1979 the defendant requested for another extra week for completion of the work. But the plaintiff turned down the request by its letter dated 2-11-1979. The starting of the work should be taken as 30-10-1979 as on that day Insurance Surveyors held survey and gave recommendations. The job was to be done by the defendant partly in wet basin and partly in dry dock. For that purpose 42 days and 15 days respectively were allotted. By 27-12-1979 the period for completion of work elapsed. However, the defendant failed and neglected to complete the dry dock work expeditiously with due diligence though the dry dock was available. The defendant repaired some other vessels and refused to pay any attention to the repairs of the ship of the plaintiff in spite of repeated protests by the plaintiff. Further, though not required, at the request of the defendant the plaintiff made two interim payments of Rs. 5,00,000/- and Rs. 10,00,000/- even before the work was completed. The ship was delivered on 7-3-1980. The defendant committed breach of contract and the plaintiff sustained heavy loss at the rate of Rs. 63,000/- per day, for 70 days. When the defendant failed to pay damages in spite of demands, the suit is filed.