RADHA PRASAD DEAD Vs. UNITED COMMERCIAL BANK

JUDGEMENT

(1.) Defendant has tiled this appeal.

(2.) Plaintiff-respondent is a nationalised Bank. It had filed Money Suit No. 51 of 1978 for realisation of Rs. 1,03,008.11 paise and damages at the rate of Rs. 1,000/- per month till disposal of the suit with the undertaking to pay the court-fee after the amount of damages is determined by the Court, on the following allegations : Defendant is the owner of plot No." 1068. He made an offer to construct a building having an area of 3,000 square-feet for the use of the Bank for its office and residence of its Manager. The offer was accepted as per the terms and conditions indicated in the letter of acceptance dated 27.5-1975 ana thereafter, an agreement was signed between the parties on 11.6.1975 incorporating the terms and conditions. A loan for Rs. 1,00,000/- was sanctioned. It was stipulated that the house would be completed and possession would be delivered within six months from the date of agreement; the loan amount together with interest should be repaid within a period of ten years from the date of delivery of possession and the Bank may occupy the building on monthly rent of Rs. 1,000/- which could be adjusted or appropriated by the Bank towards the dues of the Bank. It was also stipulated that if the defendant fails to deliver possession of the building within the stipulated period, the plaintiff shall be entitled to revoke the agreement and realise the entire amount with interest and in such an event, the Bank shall be at liberty to claim damages at the rate of Rs. 1,000/- per month. It was stipulated that the loan amount shall be paid in instalments to the defendant in the discretion of the Bank depending upon the stage of construction of the building. It was alleged in the plaint that a sum of Rs. 25,000/- was paid to the defendant on 8.7.1975 with the understanding that the said amount shall be utilised for making construction upto the plinth level. Subsequently, further instalment of Rs. 25,000/-was advanced to the defendant. However, as there was no further progress of construction after availing the second instalment in spite of oral and written directions of the Bank, the Bank issued registered notice to return all monies along with interest. Accordingly, the suit was filed for realisation of a sum of Rs. 50,000/- alongwith interest and for realisation of damages.

(3.) The defendant in his written statement took the plea that the money required for construction was not advanced in due time. It was further asserted that though at the time of payment of the second instalment it was shown that Rs. 25,000/- had been paid, actually a sum of Rs.12,000/- had been paid after illegally deducting Rs. 13,000/- towards other alleged dues of the Bank. It was further stated that the Bank defaulted in paying the other instalments in spite of several letters of the defendant. The claim of the Bank for payment of damages was resisted.