HINDUSTHAN STEEL LTD. (DEFENDANT) Vs. R C. ROY

JUDGEMENT

(1.) This appeal arises out of the money suit filed by the plaintiff -respondent against the defendant -appellant for realisation of amount due for the work done under a contract. The appellant -defendant is a Limited Company with its head office at Ranchi and having a Steel Project at Rourkela. The Plaintiff -respondent is a contractor and claims to be engaged in contract business since the year 1955.

(2.) The appellant issued notice on 29.5.1962 inviting quotations (tender) regarding Breaking and Loading of Slags and all Debris produced in Steel Melting Shop and Transporting and Unloading the same from one place to the other within the plant area. The plaintiff -respondent submitted his tender on 5.5.62 with a demand draft of Rs. 15,000/ - as earnest money. The offer made by the respondent, being the lowest, was accepted by the appellant and first he was verbally asked to make arrangement to start his work with effect from 26.6.1962. In pursuance of the said verbal order, the respondent started his work from 27.6.62. Subsequently a written order was given to him on 17/18.8.1962 by the appellant directing him to execute an agreement and accordingly an agreement was executed. The original agreement was retained by the appellant -company. A plain copy of the same was filed with the plaint as Annexure -B.

(3.) In course of execution of the work, according to the system prevalent there, trip cards (for each Truck load of the Slags and Debris loaded and removed) duly filled up and signed by the Officers of the defendant company were maintained and subsequently, they were deposited in the office of the Superintendent, Steel Melting Shop. The appellant had been also maintaining measurement book written and signed by their officers mentioning therein the actual quantity of slags and debris removed by the trucks with the Trucks number. According to the terms of the agreement, the respondent submitted bills from time to time which were passed by the competent officer of the appellant, after verifying the same with the trip cards and the measurement book. The case of the respondent further is that he submitted in all 8 (eight) bills covering the total amount of Rs. 2,84,598/ -, for the work done by him. Plain copy of the said bills were filed as annexure C to C/7 with the plaint. He received payment of a sum of Rs. 2,06,710.55P. only on the basis of the bills submitted by him from time to time and a sum of Rs. 77,880.35 remained due. In spite of repeated demand the defendant did not pay the said amount and the earnest money and so a Pleader's Notice was sent to the defendant on 17.1.1966. Neither any reply was received by the respondent nor any payment was made to him and so he instituted the suit. The plaintiff further claimed interest at the rate of 12% per annum on the amount due as the same was withheld by the appellant illegally in spite of repeated demand. According to the respondent, the cause of action arose on the date when the tender was submitted by him and ht started his work and executed agreement and finally on the day when the work was completed on 24.2.1963. Besides the amount due for the work done by the plaintiff -respondent and the earnest money, a sum of Rs. 32,550/ - was claimed as interest and thus the total claim was for Rs. 1,25,438.35 P.