LAWS(MPH)-1994-8-81

TARACHAND Vs. STATE OF M.P.

Decided On August 03, 1994
TARACHAND Appellant
V/S
STATE OF M.P. Respondents

JUDGEMENT

(1.) VIDE agreement No. 160/80 -81 the petitioner was awarded contract for collection of Hard Metal of various sizes from K.M. 21 to 53 of Shivpuri Shcopur Road. On presentation of the final bill after completion of the work 10% deduction was made on the ground that there was dust and like faults in the material supplied. The deduction of 10% amounted to Rs. 55,916.10 paise. The petitioner raised dispute and after serving notice Ex. P. 22, laid a claim for the aforesaid amount and interest amounting to Rs. 20,006.00 by way of damages under Section 7 of the M.P. Madhyastham Adhikaran Adhiniyam, 1983 (hereinafter called the Act) before the M.P. Madhyastham Adhikaran (hereinafter the Tribunal). By award dated 28th day of February, 1989, the learned Tribunal upheld the claim based on challenge to 10% deduction and allowed the same but the interest was refused on the ground that there was no stipulation for payment of interest on damages in the contract of agreement and the contractor was not entitled to any such relief under Interest Act as well. The petitioner challenges the rejection of his claim for interest in this revision on the ground that the refusal being wholly arbitrary amounts to illegality and deserves to be rectified.

(2.) THE argument of the learned counsel for the applicant is that the Tribunal was wrong in holding that the claim of interest was not included in the notice served on the State (Ex. P. 22). Perusal of the said notice shows that the Tribunal was not wrong in holding so as the claim of interest was not specifically mentioned therein. It was next argued that the tribunal having held that the deduction was wrongfully made in the final payment, it was obligatory for the learned Tribunal to have awarded interest at reasonable rate and the contractor on the amount thus held deducted without justification.

(3.) IN result we find no substance in this revision which fails and is hereby dismissed. No order as to costs.