Facts
The plaintiff was awarded a tender by the defendant on February 9, 2018, for the construction of a Bus Terminus and Market Complex in Bongaon, with a completion period of 365 days.
Source reference: para. 2, 4, 6The plaintiff alleged substantial delays and breaches by the defendant, including failure to provide requisite drawings, failure to furnish reference points for site surveys, and non-payment of Running Account (RA) bills.
Source reference: para. 9In July 2019, the defendant instructed the plaintiff to slow down work due to an alleged lack of funds.
Source reference: para. 9(vi)The plaintiff ultimately filed a suit for recovery of dues under the 9th RA Bill, additional work, earnest money, security deposits, and damages.
Source reference: para. 1, 13The defendant failed to enter an appearance, and the matter was heard as an "Undefended Suit".
Source reference: para. 17Issues
1. Whether the plaintiff is entitled to recover the unpaid 9th Running Account Bill and charges for additional/supplementary work executed.
Source reference: para. 26-27, 302. Whether the plaintiff is entitled to the refund of the Earnest Money Deposit (EMD) and Security Deposit.
Source reference: para. 28, 303. Whether the plaintiff is entitled to compensation for losses suffered due to extended stay and loss of profit.
Source reference: para. 29-30Law Applied
The court applied the principles of the Indian Contract Act, 1872, regarding reciprocal promises and breach of contract.
Source reference: no citationSpecifically, it looked at Clause 7 and 8 of the Conditions of Contract, which mandate monthly payments for work executed and establish the finality of measurements if not disputed by the Engineer-in-charge.
Source reference: para. 23It also applied Clause 28 of the Conditions of Contract, which governs the payment and rate analysis for "supplementary" or "extra" items of work not stipulated in the original bill of quantities.
Source reference: para. 25Reasoning
The court found that the plaintiff successfully proved the execution of work through uncontroverted evidence, including the 9th RA Bill [Exhibit-N] and the cost sheet for additional work [Exhibit-O].
Source reference: para. 22, 25Under Clauses 7 and 8, since the defendant’s Engineer-in-charge did not dispute the measurements or the bill, the claims remained valid.
Source reference: para. 23, 26Furthermore, the court noted the defendant’s letter dated August 29, 2020, which admitted the pendency of one bill due to "lack of funds," thereby acting as an admission of liability.
Source reference: para. 21Regarding the security deposit and EMD, the court observed that the contract was terminated without any evidence of forfeiture by the defendant, making these sums refundable.
Source reference: para. 28However, the court found the plaintiff's evidence insufficient to prove the quantified damages for loss of profit and extended stay under Claim No. 4.
Source reference: para. 30Holding
The court answered Issues 1 and 2 in the affirmative and Issue 3 in the negative.
It held that the plaintiff proved its case for the recovery of liquidated dues but failed to prove the claim for unliquidated damages.
Source reference: para. 30The court decreed a sum of Rs. 1,87,99,874.08 in favor of the plaintiff, comprising the 9th RA Bill (Rs. 39,09,330.24), supplementary work (Rs. 62,18,386.84), Security Deposit (Rs. 45,59,116), and EMD (Rs. 41,13,041).
Source reference: para. 30-31Simple interest at the rate of 10% per annum was awarded from the date of filing the suit until realization.
Source reference: para. 31Original Court PDF
NARAYAN KUMAR INFRASTRUCTURE PRIVATE LIMITEDvsBONGAON MUNICIPALITY
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