JAIDEV SINGH CHADHA Vs. M.P.E.B.

JUDGEMENT

(1.) THIS is an appeal directed against the judgment dated 25.7.1990 passed by the learned Single Judge of this Court in F.A. No. 223/86, whereby the learned Single Judge has dismissed the First Appeal.

(2.) THE brief facts which are necessary for disposal of this appeal are that M/s Jai Deo Singh Chadha is a Contractor, who brought an action against the M.P. Electricity Board (hereinafter referred to as the 'MPEB' in brevity) for a declaration to the effect that the MPEB is not liable to forfeit the bank guarantee furnished in lieu of earnest money of Rs. 45,000/ - by the defendant No. 2 Union Bank of India and to command the MPEB to deliver the said bond duly discharged. The suit was filed on 5.2.1976, vide Civil Suit No. 8A of 1976. Similarly, the MPEB also filed a suit vide Civil Suit No. 1B of 1978 against the Contractor and the Union Bank of India for recovery of earnest money valued at Rs. 45,000/ - as a compensation for breach of contract. Both the suits were tried by the learned trial Judge and the learned trial Judge came to the conclusion that no concluded contract had come into existence between M/s Jai Deo Singh Chadha and MPEB and, therefore, the MPEB was not entitled to get any compensation for breach of contract from the Contractor and also dismissed the suit of the Contractor holding that the suit for declaration simpliciter was not maintainable in view of the provisions of section 34 of the Specific Relief Act and no Court fee had been paid on consequential relief ad valorem on Rs. 45,000/ -.