PARMA NAND Vs. STATE OF H.P.

JUDGEMENT

(1.) THE instant appeal has been filed by the appellant feeling aggrieved and dissatisfied by the judgment and decree passed by the Learned Single Judge in Civil Suit No.88 of 1992 dated 22nd December, 1998, whereby the suit filed by the appellant was partly decreed.

(2.) IN brief, the facts giving rise to the instant appeal are that the appellant is a registered mining contractor, who had taken a slate quarry named as "Gaddi Dwar" on auction, on the highest bid of Rs. 41,000/- and deposited security of Rs.10,250/- alongwith first instalment of the equal amount on 4.5.1987, on execution of the agreement (Ext.PW1-A) dated 21.6.1988 being the highest bidder, for a period of five years w.e.f 1.9.1987. As per the agreement, the amount of Rs.41,000/- per annum was to be paid in equal quarterly installments. It was pleaded that up to 1.3.1999, the appellant had paid six instalments and each instalment was of Rs.10,250/-. He had also made the payment of Rs.71,750/- as security and royalty amount to the respondents. It was averred by the appellant that he had spent an amount of Rs.1,40,000/- for arranging rope ways and three diesel engines for the purpose of running the quarry and also spent Rs.21,000/- for the material which was required for its working. But in the meantime, vide letter dated 11.6.1991 (Ext.PW1/B), the Mining Officer informed that the lease in favour of the appellant was cancelled in public interest w.e.f. 18.3.1989. It is alleged that no show cause notice was given to the appellant before such cancellation, whereas, the agreement provided 30 days notice. Thus, he incurred the expenses and damages to the tune of Rs.3,22,00/-, and the cancellation was wrong. On these allegations, the appellant sought the relief and prayed for a decree of specific performance of contract aforesaid and also claimed in total the amount of Rs.5,85,825/- alongwith the interest @ 17% per annum.

(3.) ON the pleadings of the parties, following issues were framed: