Facts
The respondent, a contractor carrying out cladding and related work, was awarded work at Ambience Mall under a work order dated 23 March 2006.
Source reference: p. 2–3The agreed payment terms provided for release of 80% against running or assessed bills, 10% on completion of a façade, and the remaining 10% on handover.
Source reference: p. 2–3, 6The contractor raised bills for work at the Multiplex/Platinum Block and Hotel Block and alleged that substantial sums remained unpaid.
Source reference: p. 4–7The appellant company disputed the bills and asserted that the contractor had abandoned the work in August 2006 and had been paid in excess.
Source reference: p. 4–7The trial court decreed ₹24,90,143.90 with pendente lite and future interest at 12% per annum, but dismissed the claim for machinery valued at ₹6 lakh.
Source reference: p. 9–10The company appealed under Section 96 CPC.
Source reference: p. 1, 10Issues
1. Whether the contractor abandoned the project in August 2006, as alleged by the appellant
Source reference: p. 8; pp. 13–142. Whether the evidence supported the bills and the trial court’s determination of ₹24,90,143.90 as the outstanding amount
Source reference: pp. 10, 14–153. Whether the TDS certificate supported the respondent’s claim of liability
Source reference: p. 15Law Applied
The appeal was brought under Section 96 of the Code of Civil Procedure, 1908, which provides for an appeal from an original decree.
Source reference: p. 1The court applied the parties’ contractual payment terms under the work order.
Source reference: pp. 2–3, 12It also reasoned that, once the contractor had submitted and proved the running bills, the defendants had to establish that those bills did not correspond to the work executed; a correction to one bill did not, without further evidence, establish errors in later bills.
Source reference: p. 14No judicial precedents were cited in the judgment.
Source reference: no citationReasoning
The court rejected the abandonment defence because the appellant’s pleadings acknowledged that some work continued in September, its own account showed dealings into October, and a payment was made directly to the contractor’s labour on 21 October 2006.
Source reference: pp. 13–14The appellant also produced no site engineer or other evidence establishing that the billed work was not performed or left incomplete.
Source reference: pp. 13–14The contractor’s bills were supported by measurement records and weekly site reports, while the appellant identified no specific error in the later bills; the correction to the June bill did not prove that subsequent bills were inaccurate.
Source reference: p. 14In calculating the balance, the court excluded ₹1,10,527 paid for the Hotel Block from the Multiplex/Platinum Block bill, leaving ₹24,90,143.90 due.
Source reference: p. 15The TDS certificate was treated as corroborative of the liability, not as the sole basis for it.
Source reference: p. 15Holding
The High Court held that the trial court had rightly found the appellant liable for ₹24,90,143.90, with interest at 12% per annum, and dismissed the appeal.
The claim for ₹6 lakh for machinery had been dismissed by the trial court and was not the basis for the decree under appeal.
Source reference: p. 10The pending applications were disposed of accordingly.
Source reference: p. 16Acts & Sections Cited
1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Code of Civil Procedure, 19081
Original Court PDF
M/S Ambience Developers & Infrastrucutre Pvt LtdvsSanjay Rustagi & Ors
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