ANIL KUMAR MAHAJAN Vs. STATE OF H.P.

JUDGEMENT

(1.) THIS is a suit for the recovery of Rs.21,50,000/- filed by the plaintiff. The allegations made by the plaintiff are that the plaintiff is enlisted as a Class-I contractor with the HPPWD. During the course of his business as contractor, the plaintiff had entered into contracts with defendant No.1 through defendant No.2 for execution of some works vide four agreements No.60 of 98-99, 34/99-00, 1/02-03 and 3/02-03.

(2.) IT was alleged that the agreements for the said works have been duly executed between the parties on the standard forms of contract. These works have been duly completed by the plaintiff and the measurements were also recorded in the measurement books maintained by the defendants.

(3.) THE above amounts have become payable to the plaintiff on the passing of the bills by defendant No.2, but inspite of several demands made by the plaintiff, the defendants have failed to make any payment against the said bills. It was further alleged that vide agreement 60 of 98-99, there was a price escalation clause and in terms of the said clause, the plaintiff had submitted the price escalation claim to defendant No.2 alongwith his letter dated 14.10.2002, but the said escalation claim amounting to Rs.10,42,276/- has not been paid. It was also alleged that as per the agreement in between the parties, there was arbitration clause requiring all disputes to be referred to the Arbitrator, but the matters regarding bills passed for payment are not in dispute and are not covered by the arbitration clause. The plaintiff claimed that on account of the above works, he is entitled to a sum of Rs.20,78,960/- and he claimed interest also at the rate of 2% per annum and in all claimed a sum of Rs.21,50,000/-. He also alleged that he had issued notice under Section 80 of the CPC upon the defendant to pay the amount, but it was not paid. Hence the suit filed by the plaintiff for the recovery of the amount alongwith interest at the rate of 18%.