{"id":43345,"date":"2009-10-16T00:00:00","date_gmt":"2009-10-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/khopoli-municipal-council-vs-smt-chanda-r-sable-on-16-october-2009"},"modified":"2016-11-10T16:28:30","modified_gmt":"2016-11-10T10:58:30","slug":"khopoli-municipal-council-vs-smt-chanda-r-sable-on-16-october-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/khopoli-municipal-council-vs-smt-chanda-r-sable-on-16-october-2009","title":{"rendered":"Khopoli Municipal Council } vs Smt Chanda R.Sable } on 16 October, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Bombay High Court<\/div>\n<div class=\"doc_title\">Khopoli Municipal Council } vs Smt Chanda R.Sable } on 16 October, 2009<\/div>\n<div class=\"doc_bench\">Bench: P. B. Majmudar, R. V. More<\/div>\n<pre>                                  - 1 -\n\n\n            IN THE HIGH COURT OF JUDICATURE AT BOMBAY\n\n\n\n\n                                                                  \n                 CIVIL APPELLATE JURISDICTION\n                    FIRST APPEAL NO.433 OF 1998\n\n\n\n\n                                          \n     1. Khopoli Municipal Council       }\n        at and Post: Khopoli Taluka     }\n        Taluka Khalapur,District Raigad }\n\n     2. The Chief Officer, Khopoli        }\n\n\n\n\n                                         \n        Municipal Council,At and Post     }\n        Khopoli,Taluka Khalapur           }\n        District Raigad                   }             . Appellants\n\n                                                 Orig.Defendants)\n\n\n\n\n                               \n                     vs\n     Ram Malhari Sable (since deceased)    }\n                    ig                     }\n     1.   Smt Chanda R.Sable               }\n     2.   Mina Ram Sable                    }\n     3.   Santosh Ram Sable                }\n                  \n     4.   Sandhya Ram Sable             .. }\n     5.   Sachin Ram Sable                   }\n          All adults, residing at Khopoli, }\n          Taluka Khalapur, District Raigad }\n                                                 .. Respondents\n                                                  (Orig.Plaintiff\n      \n\n\n                                                   nos.1 to 5 in\n                                                   the suit)\n   \n\n\n\n                           ..\n     Mr.Gautam Patel a\/w Mr.Rushir Tolat i.b.L.C.Tolat &amp; Co\n     for Appellants\n\n     Mr.S.G.Aney,Sr.Counsel with Mr.Vineet B,Naik with\n\n\n\n\n\n     Mr.R.S.Alange for Respondent nos. 1 to 5.\n\n                       CORAM:P.B.MAJMUDAR AND\n                              R.V.MORE,JJ\n                Reserved on: 6th October, 2009\n                Pronounced on:16th October, 2009\n\n\n\n\n\n     JUDGMENT ( Per R.V.More, J )\n<\/pre>\n<p>     1.     The appellant (Original Defendants) takes exception<\/p>\n<p>     to the judgment and decree dated 7th March, 1998 passed<\/p>\n<p>     by the Civil Judge, Senior Division, Panvel, at Panvel in<\/p>\n<p>     Special Civil Suit No.91 of 1992     wherein the appellants<\/p>\n<p>     were directed to pay Rs.53,32,411\/- to the respondents by<\/p>\n<p><span class=\"hidden_text\">                                          ::: Downloaded on &#8211; 09\/06\/2013 15:14:01 :::<\/span>\n<\/p>\n<p>                                              &#8211; 2 &#8211;\n<\/p>\n<p>\n     way of damages with simple interest at 18 % p.a. From the<\/p>\n<p>     date of the suit.\n<\/p>\n<\/p>\n<p>             The facts leading to the filing of the appeal are<\/p>\n<p>     as follows :\n<\/p>\n<\/p>\n<p>     2.      One Ram Sable, predecessor-title of the respondents<\/p>\n<p>     filed    a     suit    against     the     appellants      for    a    perpetual<\/p>\n<p>     injunction and directing them to obey the agreements and<\/p>\n<p>     resolutions passed from time to time for the construction<\/p>\n<p>     of a hospital building.             In the alternative, a claim was<\/p>\n<p>     also made for recovery of an amount of Rs.35,65,411\/-<\/p>\n<p>     towards damages. (hereinafter for the sake of convenience<\/p>\n<p>     Appellants and Respondents are referred to as defendants<\/p>\n<p>     and plaintiff respectively.) The case of the plaintiff<\/p>\n<p>     was     that    the        defendants    had    called     for      tender       for<\/p>\n<p>     construction          of    a   hospital    building.          The     plaintiff<\/p>\n<p>     filled in the tender and his tender being the lowest, the<\/p>\n<p>     work of construction of hospital by a written agreement<\/p>\n<p>     dated 19th August, 1980 was alloted to him.                           The period<\/p>\n<p>     of completion of the construction of the said hospital<\/p>\n<p>     was 18 months from the date of agreement. The defendants<\/p>\n<p>     agreed to supply the required quantity of cement bags for<\/p>\n<p>     the construction of hospital building.                    The work order in<\/p>\n<p>     pursuance of agreement was issued on 21st August, 1980.<\/p>\n<p>     The line out one was given on 12th September, 1980 and<\/p>\n<p>     actual work of construction started on 15th September,<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                           &#8211; 3 &#8211;\n<\/p>\n<p>\n     1980.     The plaintiff thereafter, collected the required<\/p>\n<p>     material for the construction of the building and also<\/p>\n<p>     obtained loan from the Bank of Maharashtra to the extent<\/p>\n<p>     of    Rs.3,50,000\/-.         It     is   the       specific        case     of     the<\/p>\n<p>     plaintiff that the defendants stopped supply of cement<\/p>\n<p>     and   therefore,      the    work    was     stopped.            The     rates      of<\/p>\n<p>     building     material       was     in       the      meantime         enormously<\/p>\n<p>     increased.    The plaintiff          did not seek any escalation in<\/p>\n<p>     the rate of         construction         for a period of 18 months.\n<\/p>\n<p>     However,thereafter          demanded         higher          rate        for       the<\/p>\n<p>     construction in view of the escalation of the price of<\/p>\n<p>     the building material and the defendants in pursuant to<\/p>\n<p>     the demand of plaintiff passed a resolution bearing No.64<\/p>\n<p>     on 22nd July, 1983 and agreed to the escalation in price.<\/p>\n<p>     The     plaintiff    continued        the      construction            work      from<\/p>\n<p>     August,    1983     but,    on    31st   March        1984      the    Collector,<\/p>\n<p>     Raigad stopped the construction work of the building on<\/p>\n<p>     the basis of a complaint by one of the Councillors of the<\/p>\n<p>     defendants. The plaintiff again sought for increase in<\/p>\n<p>     the rate since        the building           material had             become very<\/p>\n<p>     costly     during    that    period.         The     defendants          passed       a<\/p>\n<p>     resolution bearing No.58 on 25th July 1986 and agreed to<\/p>\n<p>     increase 25 % above the DSR of 1986. This resolution was<\/p>\n<p>     again stayed by the Collector of Raigad and the plaintiff<\/p>\n<p>     was compelled to suspend the construction activities.                               An<\/p>\n<p>     appeal was filed against the order of the Collector to<\/p>\n<p>     the Director of Municipal Administration.                           However, the<\/p>\n<p><span class=\"hidden_text\">                                                        ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                               &#8211; 4 &#8211;\n<\/p>\n<p>\n     same was dismissed and thereafter                        Revision application<\/p>\n<p>     was filed before the State of Maharashtra. The State of<\/p>\n<p>     Maharashtra allowed the appeal of the plaintiff and a<\/p>\n<p>     direction was given that the plaintiff should complete<\/p>\n<p>     the    construction      work       as    per     the    rates    given      in    the<\/p>\n<p>     resolution No.58 dated 25th July, 1986.<\/p>\n<p>     3.      The plaintiff thereafter in pursuance of the order<\/p>\n<p>     of the government executed a fresh agreement on 16th May<\/p>\n<p>     1988.      This<br \/>\n                      igagreement         was        subsequently       confirmed        by<\/p>\n<p>     defendants by passing Resolution No.51 dated 9th June,<\/p>\n<p>     1988.     The plaintiff contended that they are ready and<\/p>\n<p>     willing to complete            the construction                work as     per the<\/p>\n<p>     agreement dated 16th May 1988.                    However, officers of the<\/p>\n<p>     defendants did not allow the plaintiff to commence the<\/p>\n<p>     work      and    they    worked      against           their    interest.          The<\/p>\n<p>     defendants did not pay the plaintiff adequate money, did<\/p>\n<p>     not supply cement and did not record the measurement in<\/p>\n<p>     the measurement book.               The plaintiff also averred that<\/p>\n<p>     had the defendants co-operated, he would have constructed<\/p>\n<p>     the    hospital    building         in    time     and    would     have       earned<\/p>\n<p>     goodwill.        However,      for       the     adamant       attitude      of    the<\/p>\n<p>     officers    of     the       defendants          the    work     could      not     be<\/p>\n<p>     completed for a period of 9 years. It was also contended<\/p>\n<p>     that exorbitant         interest was required to be paid for the<\/p>\n<p>     loan    obtained        by    the        plaintiff       from     the     Bank      of<\/p>\n<p>     Maharashtra.        An       amount        of    Rs.10,10,000\/-          was      also<\/p>\n<p><span class=\"hidden_text\">                                                        ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                              &#8211; 5 &#8211;\n<\/p>\n<p>\n     claimed from the defendants towards running bills.                             This<\/p>\n<p>     payment was also delayed by the defendants. The plaintiff<\/p>\n<p>     ultimately      served       a   notice     on   21st    August,       1989      and<\/p>\n<p>     thereafter filed a suit requiring the defendants to obey<\/p>\n<p>     the agreements and resolutions passed by them from time<\/p>\n<p>     to time and an injunction restraining their officers,<\/p>\n<p>     servants       and    agents      from    causing     obstruction         in     the<\/p>\n<p>     construction         work.       An    amount    of     Rs.10,10,000\/-           was<\/p>\n<p>     claimed towards outstanding bills as on 30th September,<\/p>\n<p>     1988.\n<\/p>\n<p>              By way of damages, the plaintiff claimed an amount<\/p>\n<p>     of Rs.6,60,000\/- for the rent he had to pay for centering<\/p>\n<p>     and machinery for a period of 11 months at Rs.60,000\/-<\/p>\n<p>     per month, Rs.15,76,818\/- towards interest amount which<\/p>\n<p>     the plaintiff was required to pay to the bank, an amount<\/p>\n<p>     of Rs.3,13,700\/- towards payment of salary to gateman and<\/p>\n<p>     watchman and Rs.5,000\/- for notice charges.<\/p>\n<p>     4.      The plaintiff amended the plaint in pursuance of an<\/p>\n<p>     order on Exhibit 32 and added para No. 39.                               By this<\/p>\n<p>     amendment, he prayed for obedience of Resolution no.43<\/p>\n<p>     dated    9th    May    1991.      In     pursuance    of    an    order      below<\/p>\n<p>     Exhibit 75, the plaint was again amended so as to enhance<\/p>\n<p>     the original claim of Rs.35,65,411\/- to Rs.60,82,418\/-.<\/p>\n<p>     The plaintiff revised the claim for damages under the<\/p>\n<p>     caption&#8221; interest&#8221; from Rs.15,76,811\/- to Rs.17,18,811\/-.<\/p>\n<p>     The plaintiff further claimed centering material bills at<\/p>\n<p>     Rs.60,000\/- per month from the date of notice till the<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                             &#8211; 6 &#8211;\n<\/p>\n<p>\n     institution of suit totalling Rs.3,60,000\/-.                              Thus, the<\/p>\n<p>     claim for rent           for centering          and machinery             and other<\/p>\n<p>     material is calculated at Rs.10,20,000\/- as on the date<\/p>\n<p>     of    suit.    The   plaintiff         also     added       new    claim      of     Rs.<\/p>\n<p>     19,50,000\/-.         This       claim    was     made        on    the     basis      of<\/p>\n<p>     resolution No.43 dated 9th May 1991.                         It is contended by<\/p>\n<p>     the     plaintiff        that    the     defendants            agreed       to     give<\/p>\n<p>     construction rate as per DSR for 1991-92.                             Balance work<\/p>\n<p>     of the hospital building was estimated at                          Rs.78,00,000\/-\n<\/p>\n<p>     and had the work was completed, he would have earned 25 %<\/p>\n<p>     profit that is how claim of Rs.19,50,000\/- was made.                                 The<\/p>\n<p>     plaintiff also claimed 24 % interest on the decreetal<\/p>\n<p>     amount.\n<\/p>\n<\/p>\n<p>     5.      The   defendants        by     filing        the     written       statement<\/p>\n<p>     resisted the claim of the plaintiff. The facts in respect<\/p>\n<p>     of calling for tender, contract with the plaintiff and<\/p>\n<p>     issuance      of   the    work    order        are     not     disputed       by     the<\/p>\n<p>     defendants.        It was contended by the defendants that they<\/p>\n<p>     have supplied 3355 cement bags to the plaintiff during<\/p>\n<p>     the period from           14th November,             1980 to       3rd December,<\/p>\n<p>     1981.     It was contended that considering the total supply<\/p>\n<p>     of cement bags to the plaintiff                  and the total work done<\/p>\n<p>     by the plaintiffs at site, it cannot be said that the<\/p>\n<p>     construction work was             suspended due              to non       supply of<\/p>\n<p>     cement.       The defendants denied that they have committed<\/p>\n<p>     any breach of the agreement for the supply of cement. It<\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                                &#8211; 7 &#8211;\n<\/p>\n<p>\n     was the case of the defendants that payment of advance<\/p>\n<p>     towards material, running account bills etc have been<\/p>\n<p>     paid to the plaintiff and inspite of this he did not<\/p>\n<p>     complete the construction of hospital within the agreed<\/p>\n<p>     period    and     completely         stopped        the     construction           since<\/p>\n<p>     November, 1981.           The plaintiff was informed from time to<\/p>\n<p>     time by letters dated 15th                        June 1986, 19th February<\/p>\n<p>     1982, 31st February 1982 and 12th July, 1982 for the<\/p>\n<p>     lapses committed on his part. Notice dated 16th September<\/p>\n<p>     1982 was also issued to him.                      In the said notice, it was<\/p>\n<p>     contended       that       the       defendants           complied        with       its<\/p>\n<p>     obligation under the agreement                     and inspite of this, the<\/p>\n<p>     plaintiff       failed      to       complete        the     work      within        the<\/p>\n<p>     prescribed        period.            It     was     specific        case      of     the<\/p>\n<p>     defendants      that      plaintiff         raised     false       contentions        of<\/p>\n<p>     price escalation of building material and suspended the<\/p>\n<p>     work. It also contended that brother of the plaintiff,<\/p>\n<p>     Laxman     Sable       being     a    Municipal           Councillor       used      his<\/p>\n<p>     position to gain undue advantage and attempted to seek<\/p>\n<p>     escallation in the amount of construction of the hospital<\/p>\n<p>     building. It was contended that the plaintiff did not<\/p>\n<p>     make sincere efforts for completion of                         the construction<\/p>\n<p>     work     within    a      period      of     18     months.             Inspite       of<\/p>\n<p>     resolution        no.64     dated         22nd     July     1983    granting         him<\/p>\n<p>     increased rates, the plaintiff started construction at a<\/p>\n<p>     very slowly speed just to give a feeling that work was<\/p>\n<p>     started.        The defendants supplied 1700 bags of cement<\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                                &#8211; 8 &#8211;\n<\/p>\n<p>\n     during the period from 10th March 1983 to 8th October,<\/p>\n<p>     1984.     An amount of Rs.2,00,000\/- and Rs.1,00,000\/- was<\/p>\n<p>     paid     on   30th       December      1983        and        14th    February         1983<\/p>\n<p>     respectively.           Subsequently, resolution no. 58 dated 25th<\/p>\n<p>     July, 1986 was passed under which the plaintiff was to be<\/p>\n<p>     paid    25    %    above     DSR     of    1986         and    an    amount      of     Rs.<\/p>\n<p>     2,00,000\/- was to be given by way of advance. However,<\/p>\n<p>     both the resolutions were                  quashed and set aside by the<\/p>\n<p>     Collector and the respondents were directed to complete<\/p>\n<p>     the    work   as<br \/>\n                        igper     the     original       tender          rates.        It    was<\/p>\n<p>     contended that the government allowed the appeal of the<\/p>\n<p>     plaintiff whereunder directions were given to complete<\/p>\n<p>     the construction of hospital building as per resolution<\/p>\n<p>     no. 58 dated 25th July, 1986.                       However, payment of Rs.<\/p>\n<p>     2,00,000\/- was turned down which was agreed to be given<\/p>\n<p>     as    advance      to    the    plaintiffs.             In     pursuance        of     this<\/p>\n<p>     decision, the defendants supplied 1000 bags of cement<\/p>\n<p>     between he period              from 20th March 1988 to 29th April<\/p>\n<p>     1988.     However, the plaintiff started demanding payment<\/p>\n<p>     of all the work completed by them as per new rates which<\/p>\n<p>     was     contrary        to   the     government           order       itself.           The<\/p>\n<p>     defendants paid to the plaintiffs 4th running bill of Rs.<\/p>\n<p>     6,09,600\/-. It is specific case of the defendants that<\/p>\n<p>     after receipt of this bill, the plaintiff again stopped<\/p>\n<p>     construction         work      and    did         not     obey       the     terms      and<\/p>\n<p>     conditions incorporated in the agreement dated 16th May<\/p>\n<p>     1988 executed in pursuance of government order.                                  In such<\/p>\n<p><span class=\"hidden_text\">                                                             ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                               &#8211; 9 &#8211;\n<\/p>\n<p>\n     a situation, the defendants passed a resolution dated<\/p>\n<p>     23rd    December,       1988      and    thereafter           the    plaintiff       was<\/p>\n<p>     served with            communication that               he should       start work<\/p>\n<p>     within 15 days otherwise the work will stand withdrawn.<\/p>\n<p>     Inspite of this notice, the plaintiff did not re-start<\/p>\n<p>     the     work.          In   the     meantime,           all     the    files        were<\/p>\n<p>     requisitioned by the Collector of Raigad. The defendants<\/p>\n<p>     were ordered not to make payment to the plaintiff. In the<\/p>\n<p>     above    view     of    the    facts,         it   was    contended          that    the<\/p>\n<p>     plaintiff was never interested in starting the work as<\/p>\n<p>     per the latter agreement                 and filed a false suit.                   It is<\/p>\n<p>     the specific contention of the defendants that they had<\/p>\n<p>     recorded measurement of construction done by plaintiffs<\/p>\n<p>     in their measurement book. No further work was done by<\/p>\n<p>     the plaintiff beyond the work recorded in the measurement<\/p>\n<p>     book.       The    running         bills         have    been       paid     for     the<\/p>\n<p>     measurement that were recorded.                    The claim along with the<\/p>\n<p>     amended    claim        have      been    specifically              denied    by     the<\/p>\n<p>     defendants.        On the contrary, the defendants contended<\/p>\n<p>     that they have made extra payment of Rs.4,55,000\/- to the<\/p>\n<p>     plaintiff.        They also contended                   that they supplied in<\/p>\n<p>     total    6055     cement       bags      to    the      plaintiff.           However,<\/p>\n<p>     plaintiff used 4020 cement bags and 2035 bags of cement<\/p>\n<p>     were received by the plaintiffs in excess.                            The price of<\/p>\n<p>     the same is at Rs.63,737\/-.                   Thus, the defendants claimed<\/p>\n<p>     an amount of Rs.5,18,937\/- from the plaintiffs for which<\/p>\n<p>     counter claim was made.\n<\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                            &#8211; 10 &#8211;\n<\/p>\n<\/p>\n<p>     6.      The plaintiff by filing written statement denied<\/p>\n<p>     the counter claim of the defendants. At the stage of<\/p>\n<p>     evidence, the plaintiff has restricted his claim to an<\/p>\n<p>     alternate prayer for damages.\n<\/p>\n<\/p>\n<p>     7.      The   learned        trial    Judge       in    view     of    the      above<\/p>\n<p>     pleadings framed as many as 13 issues.                            The plaintiff<\/p>\n<p>     examined his brother who is the power of attorney holder<\/p>\n<p>     as PW No.1. The plaintiff also examined one Jamalbhai<\/p>\n<p>     Sisotia as PW2. On behalf of the                       defendants        one Sunil<\/p>\n<p>     Gawde, Civil Engineer was examined as DW 1.                               Both the<\/p>\n<p>     plaintiff     and      the     defendants         relied     upon      number       of<\/p>\n<p>     documents       to     which    reference          will     be     made      at     an<\/p>\n<p>     appropriate place.           The learned trial Judge on the basis<\/p>\n<p>     of the pleadings, documentary and oral evidence came to<\/p>\n<p>     the conclusion that the defendants have committed breach<\/p>\n<p>     of contract by stopping supply of cement by not making<\/p>\n<p>     payment in time and by not giving cooperation to the<\/p>\n<p>     plaintiff.      The trial Court also held that the resolution<\/p>\n<p>     no. 43 dated 9th May 1991 is legal and valid. The trial<\/p>\n<p>     court    also        held    that    the        defendants       has     not      paid<\/p>\n<p>     outstanding          bill    amount        of     Rs.10,10,000\/-           to      the<\/p>\n<p>     plaintiff. The trial court granted damages including the<\/p>\n<p>     above amount of Rs.10,10,000\/- at Rs.53,37,411\/- with 18<\/p>\n<p>     % interest p.a.from the date of the suit till realisation<\/p>\n<p>     of the decreetal amount.\n<\/p>\n<p><span class=\"hidden_text\">                                                        ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                       &#8211; 11 &#8211;\n<\/p>\n<\/p>\n<p>     8.      Mr.Gautam           Patel,    learned       counsel        for      the<\/p>\n<p>     defendants   took    us     through   the    oral     evidence        of    the<\/p>\n<p>     plaintiffs    and    the     defendants.     He     also     invited        our<\/p>\n<p>     attention     to     various      correspondence           and       notices<\/p>\n<p>     exchanged between the parties.              He submitted that the<\/p>\n<p>     defendants have not committed any breach in supply of<\/p>\n<p>     cement bags to the plaintiff. The measurement of the work<\/p>\n<p>     done   by   the    plaintiff    was   forthwith        taken      into      the<\/p>\n<p>     measurement book.          The plaintiffs was given from time to<\/p>\n<p>     time amounts towards advances and running bills.                            The<\/p>\n<p>     plaintiff has alleged          breach in     respect of          the first<\/p>\n<p>     agreement    dated    28th     August,      1980.         However,         that<\/p>\n<p>     agreement was not produced on record.                Earlier agreement<\/p>\n<p>     dated 19th August, 1980 is superseded by latter agreement<\/p>\n<p>     dated 16th May 1988.         He submitted that if allegations of<\/p>\n<p>     the plaintiff is about breach of the first agreement,<\/p>\n<p>     then the said agreement ought to have been produced on<\/p>\n<p>     record. However, the plaintiff has not done so.                      He also<\/p>\n<p>     submitted that if the suit is on the basis of latter<\/p>\n<p>     agreement dated 16th May 1988 then a grievance cannot be<\/p>\n<p>     made about breach of the terms and conditions of the<\/p>\n<p>     first agreement.      He submitted that finding of the trial<\/p>\n<p>     court cannot be sustained if the evidence on record is<\/p>\n<p>     appreciated in its proper perspective. He submitted that<\/p>\n<p>     the plaintiff&#8217;s brother Laxman Sable is an influential<\/p>\n<p>     person being a Councillor of the defendants-council since<\/p>\n<p><span class=\"hidden_text\">                                                 ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                        &#8211; 12 &#8211;\n<\/p>\n<p>\n     1975.    The suit was filed by the said Laxman Sable as a<\/p>\n<p>     power of attorney holder of the plaintiff.                              The said<\/p>\n<p>     Laxman Sable had taken undue advantage of his position<\/p>\n<p>     and got passed various resolutions from time to time. He<\/p>\n<p>     also submitted that the plaintiff could not prove that<\/p>\n<p>     the defendants had        committed breach              of the        terms and<\/p>\n<p>     conditions    of     agreement.    On      the     contrary        it    was     the<\/p>\n<p>     plaintiff who was not interested in completion of the<\/p>\n<p>     construction of the hospital work and only interested in<\/p>\n<p>     getting increased rate in construction amount. Mr.Patel<\/p>\n<p>     also submitted that the plaintiff failed to prove that<\/p>\n<p>     Rs.10,10,000\/- is due and recoverable from the defendant-<\/p>\n<p>     council. He submitted that the plaintiff also failed to<\/p>\n<p>     prove damages under the head of &#8216;loss of profit&#8217;, salary<\/p>\n<p>     of staff,     rent of centering and machinery and interest<\/p>\n<p>     on loan. He lastly submitted that the plaintiff&#8217;s suit is<\/p>\n<p>     liable to be dismissed.\n<\/p>\n<\/p>\n<p>     9.      Mr.Aney, learned senior counsel appearing for the<\/p>\n<p>     plaintiff invited our attention towards the prayers made<\/p>\n<p>     in the suit and submitted that the suit was filed for<\/p>\n<p>     enforcement     of     the   various         resolutions            passed        by<\/p>\n<p>     defendants from time to time. He invited our attention to<\/p>\n<p>     the text     of the resolutions of the defendants passed in<\/p>\n<p>     the years 1980, 1983, 1986, 1988 and 1991.                        He submitted<\/p>\n<p>     that there is enough evidence on record to show that the<\/p>\n<p>     the defendants itself committed breach of the terms of<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                         &#8211; 13 &#8211;\n<\/p>\n<p>\n     contract and terminated the contract.                     Mr.Aney took us<\/p>\n<p>     through   the    impugned     judgment        and    submitted       that       the<\/p>\n<p>     learned trial Judge has given cogent reasons in arriving<\/p>\n<p>     at a conclusion that an amount of Rs.10,10,000\/- is due<\/p>\n<p>     and recoverable from the defendants to the plaintiff.<\/p>\n<p>     He also submitted that their grant of damages under other<\/p>\n<p>     heads are allowed on the basis of evidence on record and<\/p>\n<p>     the same cannot be faulted with in any way.<\/p>\n<p>           Mr.Aney lastly submitted that the appeal filed is<\/p>\n<p>     devoid    of    substance     and       the    same      deserves        to     be<\/p>\n<p>     dismissed.\n<\/p>\n<\/p>\n<p>     10.   While     considering      the    rival        contentions,          it    is<\/p>\n<p>     necessary to be seen        as to who has committed breach of<\/p>\n<p>     contract.      In this regard, voluminous evidence produced<\/p>\n<p>     by the parties is required to be considered along with<\/p>\n<p>     the   oral     evidence   adduced       by     the    parties        and      only<\/p>\n<p>     thereafter liability of either parties will have to be<\/p>\n<p>     fixed.    There is no dispute that the plaintiff&#8217;s tender<\/p>\n<p>     was   accepted     and    work     of    construction           of     hospital<\/p>\n<p>     building was allotted to him.               Accordingly, agreement was<\/p>\n<p>     executed on 19th August, 1980. Under this agreement, the<\/p>\n<p>     defendants      undertook     to    supply       cement       bags      to      the<\/p>\n<p>     plaintiff. The construction was to be completed within a<\/p>\n<p>     period of 18 months from the date of execution of the<\/p>\n<p>     agreement.\n<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                            &#8211; 14 &#8211;\n<\/p>\n<\/p>\n<p>     11.       At this stage, the evidence of the parties is<\/p>\n<p>     required to be appreciated. Laxman Sable was examined as<\/p>\n<p>     PW 1 who is brother and power of attorney holder of the<\/p>\n<p>     plaintiff.     He deposed in his deposition that from 1978<\/p>\n<p>     to 1984 he was the Municipal Councillor of the defendant<\/p>\n<p>     council.      Thereafter, he deposed about the tender and<\/p>\n<p>     agreement     executed         between         the      defendants          and      the<\/p>\n<p>     plaintiff for construction of the hospital. He further<\/p>\n<p>     deposed    that<br \/>\n                     ig cement      bags    were      to      be    supplied         by   the<\/p>\n<p>     defendants        in     accordance            with        the      progress          of<\/p>\n<p>     construction       and    it     was      decided           that      construction<\/p>\n<p>     material was to          be procured           by the         plaintiff against<\/p>\n<p>     which   the   defendants        were     to     pay       advances        and     these<\/p>\n<p>     advances were to be adjusted in their running bills.                                  He<\/p>\n<p>     also deposed that a loan of Rs.3,50,000\/- was obtained by<\/p>\n<p>     plaintiff from the Bank of Maharashtra, Khopoli Branch,<\/p>\n<p>     in the name of the Company and repayment was to be made<\/p>\n<p>     within interest at the rate of 18 % p.a.                         He deposed that<\/p>\n<p>     the first running bill was issued within 2\/3 months from<\/p>\n<p>     commencing        of     the    construction               and       progress         of<\/p>\n<p>     construction was depending on the supply of cement bags<\/p>\n<p>     from the defendants.           He testified that supply of cement<\/p>\n<p>     bags should have been atleast 1000 bags per month as the<\/p>\n<p>     plaintiff had capacity to utilise 1000 bags of cement.<\/p>\n<p>     Cement in those days was available on permit and till<\/p>\n<p>     September     1981     the     defendants        supplied          3355      bags     of<\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                          &#8211; 15 &#8211;\n<\/p>\n<p>\n     cement.       He    testified      that    supply     of   cement      was     not<\/p>\n<p>     regular      after    September,      1981      and     construction           was<\/p>\n<p>     stopped for want of cement.               He also testified that after<\/p>\n<p>     September 1981 to July 1983 rates of building material<\/p>\n<p>     were   increased       by   100%    and      therefore     the     defendants<\/p>\n<p>     accepted      his     proposal       for     increase       in      rates       of<\/p>\n<p>     construction and passed resolution bearing no.64 of 1983.<\/p>\n<p>     This resolution was stayed by the Collector, Raigad at<\/p>\n<p>     the instance of one Councillor.                He preferred a revision<\/p>\n<p>     with the Commissioner, Raigad.                  However, the same was<\/p>\n<p>     rejected and stay was confirmed.                    He also deposed that<\/p>\n<p>     against      order     of    the     Commissioner,          he      filed       an<\/p>\n<p>     application to the government and the government allowed<\/p>\n<p>     his application and as per this decision it was decided<\/p>\n<p>     to enter into a fresh agreement which was executed on<\/p>\n<p>     16th May 1988 and thereafter resolution no.51 of 1988 was<\/p>\n<p>     passed on 29th June, 2988.             He deposed that he was ready<\/p>\n<p>     and willing to perform his part of contract as per the<\/p>\n<p>     new agreement but, the defendants were not ready.                            They<\/p>\n<p>     did    not   abide     by   the     terms     and     conditions        of     the<\/p>\n<p>     agreement.         They did not supply cement bags and did not<\/p>\n<p>     make any payment against it. In para 17 he deposed that<\/p>\n<p>     he has submitted the running bill of Rs.10,10,000\/- to<\/p>\n<p>     the defendants.        However, payment under this bill was not<\/p>\n<p>     paid to him and therefore on 21st August, 1989 notice was<\/p>\n<p>     issued to the defendants.                 In para 8 he deposed that<\/p>\n<p>     after filing of the suit there was a meeting between the<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                         &#8211; 16 &#8211;\n<\/p>\n<p>\n     office bearers of        the defendants              and himself         on 31st<\/p>\n<p>     December, 1990 and it was decided to make payment of the<\/p>\n<p>     running bills of Rs.10,10,000\/- and they further agreed<\/p>\n<p>     payment    of    Rs.26,00,000\/-      towards           damages      subject       to<\/p>\n<p>     outcome of the suit.         The defendants thereafter passed a<\/p>\n<p>     resolution No.43 dated 9th May 1991.                   The defendants also<\/p>\n<p>     wrote a letter on 5th December 1991 to the Collector,<\/p>\n<p>     Raigad    seeking     permission         to    make          payment      of     Rs.<\/p>\n<p>     10,10,000\/-.      However, the Collector, Raigad did not give<\/p>\n<p>     permission and no payment is made till today.                          In para 8<\/p>\n<p>     he has deposed that during the pendency of the suit he<\/p>\n<p>     became    President    of    Khopoli      Municipal          Council       and    he<\/p>\n<p>     advised the plaintiff to give up their claim regarding<\/p>\n<p>     the   construction      of   the    hospital           and    suit     claim      is<\/p>\n<p>     restricted for recovery of the amount of running bills<\/p>\n<p>     and dsamages.\n<\/p>\n<\/p>\n<p>     12.     In cross examination, he admitted that he was the<\/p>\n<p>     Councillor during the period from 1978 to 1984 and from<\/p>\n<p>     1996 onwards. He further admitted that whenever he was<\/p>\n<p>     not   Councillor      somebody     from        his     family     used      to    be<\/p>\n<p>     Councillor of the defendant-Council.                    However, he denied<\/p>\n<p>     that he has influenced other Municipal Councillors.                               He<\/p>\n<p>     also admitted that he was unable to give the account of<\/p>\n<p>     the centering.        In para 11 he admitted that whatever<\/p>\n<p>     bills     he    has   produced      on        record     are     as      per     the<\/p>\n<p>     measurement      maintained    by    the        defendants.         He    further<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                     &#8211; 17 &#8211;\n<\/p>\n<p>\n     admitted that the completed construction was measured and<\/p>\n<p>     plaintiff has submitted the running bills accordingly.<\/p>\n<p>     He also admitted that there is no construction which is<\/p>\n<p>     not measured by the defendants and about which no bill is<\/p>\n<p>     prepared by him.      In para 13 he has specifically admitted<\/p>\n<p>     that the plaintiff had utilised 2355 cement bags upto<\/p>\n<p>     February 1982. He also admitted that plaintiffs received<\/p>\n<p>     3355 cement bags from the defendants up to February 1988.<\/p>\n<p>     He admitted that measurement books were signed by his<\/p>\n<p>     brother.\n<\/p>\n<p>                   He admitted the measurement recorded in the<\/p>\n<p>     books. He admitted having received 3 running bills. In<\/p>\n<p>     para 14 he has deposed that he has not produced any<\/p>\n<p>     document in respect of account of centering materials.<\/p>\n<p>     He also admitted in this para that he has not produced<\/p>\n<p>     any more document whatsoever in respect of the claim of<\/p>\n<p>     Rs.10,10,000\/-.       He was confronted with the advocate&#8217;s<\/p>\n<p>     letter      dated   6th   November,        1988    under        which       the<\/p>\n<p>     plaintiffs agreed for deduction of an amount of advance<\/p>\n<p>     from running bills. In para 15 he admitted that there is<\/p>\n<p>     no documentary evidence in respect of the claim towards<\/p>\n<p>     payment of salaries of watchman and gatekeeper.                      In this<\/p>\n<p>     para   he    also   deposed   that    he    has     not     produced        any<\/p>\n<p>     document for refund of interest of loan amount to the<\/p>\n<p>     bank or interest.\n<\/p>\n<\/p>\n<p>     13.    The plaintiff also examined one Jamal Sisotia as PW<\/p>\n<p>     2. This witness is doing business of contractor in the<\/p>\n<p><span class=\"hidden_text\">                                                 ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                            &#8211; 18 &#8211;\n<\/p>\n<p>\n     name    of    Universal       Contractor.        He     deposed      about       the<\/p>\n<p>     material required for slab work and cost of material.                             He<\/p>\n<p>     has also given rate of rent of that material.                           In cross<\/p>\n<p>     examination he has admitted that Laxman Sable is having<\/p>\n<p>     his own centering materials<\/p>\n<p>     14.     The defendants examined Sunil Gawde Civil Engineer<\/p>\n<p>     as    DW1.      He    deposed    about     the    tender       and     agreement<\/p>\n<p>     executed between the defendants and the plaintiff on 19th<\/p>\n<p>     August, 1980. He deposed that up to 30th December 1981<\/p>\n<p>     the     defendants         supplied     3355     cement        bags      to      the<\/p>\n<p>     plaintiffs and there was no dispute between the parties<\/p>\n<p>     about supply of cement. He further testified that the<\/p>\n<p>     plaintiffs did not complete the construction of hospital<\/p>\n<p>     in proportionate of supply of cement. The Chief Officer<\/p>\n<p>     accordingly sent notices to the plaintiff from time to<\/p>\n<p>     time which are exhibited at Exhibit 152 to 154.                                   He<\/p>\n<p>     specifically deposed that the plaintiff did not complete<\/p>\n<p>     the work within the prescribed time but on the contrary<\/p>\n<p>     demanded higher rent and thereafter removed the centering<\/p>\n<p>     material from site and work was stopped. Notice was given<\/p>\n<p>     accordingly on 16th September, 1982 to the plaintiff. He<\/p>\n<p>     deposed      that    the    plaintiff     used     to       make   request       and<\/p>\n<p>     accordingly he was given cement bags. He deposed that<\/p>\n<p>     about     the       resolution    of      1984        and     1986     regarding<\/p>\n<p>     escalation      of    price.     However,      these        resolutions        were<\/p>\n<p>     stayed by the Collector. In para 4 he referred to the<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                         &#8211; 19 &#8211;\n<\/p>\n<p>\n     letter dated 6th April, 1988 at Exhibit 163 in which the<\/p>\n<p>     plaintiff agreed for the deduction of advance from the<\/p>\n<p>     running    bills.      He    has    deposed        that    the    defendants<\/p>\n<p>     supplied total 6000 cement bags.                  However, the plaintiff<\/p>\n<p>     utilised only 4000 cement bags. After the fresh contract<\/p>\n<p>     of 1988, the        plaintiff started         work for         sometime and<\/p>\n<p>     again started demanding increase in rates.                       Thereafter,<\/p>\n<p>     the defendants passed a resolution dated 23rd December<\/p>\n<p>     1988 calling upon the plaintiff to start work within 15<\/p>\n<p>     days.\n<\/p>\n<p>               The plaintiff was informed accordingly by letter<\/p>\n<p>     dated 4th January 1989. However, the plaintiff did not<\/p>\n<p>     start work of construction. He specifically denied that<\/p>\n<p>     demand    of   Rs.10,10,000\/-       was     for    the    work    done.        He<\/p>\n<p>     further deposed that there is no construction on site for<\/p>\n<p>     which no payment is made to the plaintiff as per the<\/p>\n<p>     measurements and defendants are not liable towards the<\/p>\n<p>     loss for any unexecuted work.               He also deposed that the<\/p>\n<p>     defendants never restrained the plaintiff from carrying<\/p>\n<p>     out further construction.\n<\/p>\n<\/p>\n<p>     15.       In cross examination in para 14 he deposed that<\/p>\n<p>     in the year 1980 Laxman Sable was Councillor from his<\/p>\n<p>     family and thereafter in the next term in 1984 wife of<\/p>\n<p>     Laxman Sable was the councillor.              For the term 1990, son<\/p>\n<p>     of Laxman Sable was the Councillor from his family and in<\/p>\n<p>     the year 1992 Tukaram Son of Laxman Sable and wife of<\/p>\n<p>     Laxman    Sable   were      the    Councillors.           In     para    20    he<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                           &#8211; 20 &#8211;\n<\/p>\n<p>\n     admitted that the plaintiff submitted bills for centering<\/p>\n<p>     at    Exhibit   121    dated    6th    February        1989     and    bills      at<\/p>\n<p>     Exhibit 126 and 127 claiming interest on bank loan and by<\/p>\n<p>     Exhibit 128 claimed bills for watchman.                        In para 21 he<\/p>\n<p>     denied that there was compromise between the defendants<\/p>\n<p>     and the plaintiff in the year 1990 as per Exhibit 139.<\/p>\n<p>     He     expressed       ignorance       regarding          the       plaintiff&#8217;s<\/p>\n<p>     application dated 16th            March 1991           for payment         of Rs.<\/p>\n<p>     10,10,000\/-.\n<\/p>\n<p>     16.     The plaintiff claimed breach of the agreement on<\/p>\n<p>     the part of the defendants for want of supply of cement<\/p>\n<p>     bags     being not proportionate etc etc.                     If the case of<\/p>\n<p>     the plaintiff is perused minutely then it is clear that<\/p>\n<p>     the    plaintiffs      was   alleging         breach    of    the     terms      and<\/p>\n<p>     conditions      in     supply    of    cement       bag,      prior       to     the<\/p>\n<p>     executing the latter agreement dated 16th May 1988. It is<\/p>\n<p>     not disputed that the second agreement was executed in<\/p>\n<p>     pursuance of the         government order            and thereby agreeing<\/p>\n<p>     to the rate of construction as per resolution nos. 58<\/p>\n<p>     dated    25th    July,       1986.         Under     this      agreement         the<\/p>\n<p>     plaintiffs      were    obliged       to   complete       the     construction<\/p>\n<p>     within a period of 15 months.                    It is clear from this<\/p>\n<p>     agreement that the rate as per resolution no.58 dated<\/p>\n<p>     25th July, 1986          was to be given to the plaintiff for<\/p>\n<p>     further construction and further period of 15 months was<\/p>\n<p>     also given to him to complete the construction.                           In view<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                            &#8211; 21 &#8211;\n<\/p>\n<p>\n     of    these   developments          the   plaintiffs          could     not     have<\/p>\n<p>     complained about the alleged breach of agreement on the<\/p>\n<p>     part of the defendants namely non supply of cement bags<\/p>\n<p>     etc    etc    which    is    prior     to      the    execution       of     latter<\/p>\n<p>     agreement of 1988.             However, since it is the specific<\/p>\n<p>     case of the plaintiffs made out in the plaint and in his<\/p>\n<p>     deposition let us scrutinise the evidence in this regard.<\/p>\n<p>     17.            In the light of the evidence adduced by the<\/p>\n<p>     respective parties, we              have to       consider which            of the<\/p>\n<p>     party has committed            breach of the agreement. It is the<\/p>\n<p>     case of the plaintiff that the defendants have committed<\/p>\n<p>     breach of the terms and conditions of the agreement by<\/p>\n<p>     not    supplying       cement        bags,      by     not     recording          the<\/p>\n<p>     measurement      in    the    measurement            book    because       of   non-<\/p>\n<p>     cooperative attitude of the defendants and non payment of<\/p>\n<p>     running bills.          Case of the defendants on the contrary<\/p>\n<p>     was that supply of cement bags were made as per the<\/p>\n<p>     requirements      of     the        plaintiff.        The     measurement          of<\/p>\n<p>     construction      was       taken    in     the      measurement        book      and<\/p>\n<p>     payment of advance of running bills were made to the<\/p>\n<p>     plaintiff.        The plaintiff was obliged to complete the<\/p>\n<p>     construction of hospital building within a period of 18<\/p>\n<p>     months from the date of execution of the agreement dated<\/p>\n<p>     19th August, 1980. In para 13 constituted attorney of the<\/p>\n<p>     plaintiff deposed as follows :\n<\/p>\n<p><span class=\"hidden_text\">                                                       ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                         &#8211; 22 &#8211;\n<\/p>\n<\/p>\n<p>          We have utilised 2355 cement bags up to<br \/>\n     February 1982.   Again I say that up to 3rd<br \/>\n     December 1981. It is true that we received<\/p>\n<p>     3355 cement bags from the appellant up to   &#8220;February<br \/>\n     1982.&#8221;.\n<\/p>\n<p>          It is true that we received 3355 cement bags<br \/>\n     from the council up to February, 1982. &#8221;\n<\/p>\n<\/p>\n<p>             Above   admission     on    the     part   of    the     C.A.of       the<\/p>\n<p>     plaintiffs do show that the Municipal council supplied<\/p>\n<p>     3355 cement bags to the plaintiff till February 1982.\n<\/p>\n<p>     However, only 2355 bags were utilised up to February 1982<\/p>\n<p>     or 3rd December 1981.          This admission totally demolish<\/p>\n<p>     the case of the plaintiff that construction of hospital<\/p>\n<p>     work was stopped due to non supply of cement bags.                        It is<\/p>\n<p>     clear    from   the   above    admission       that      though       adequate<\/p>\n<p>     quantity of cement bags were supplied to the plaintiff,<\/p>\n<p>     he    could   not   utilise   the    total     bags     supplied        by    the<\/p>\n<p>     municipal council.\n<\/p>\n<\/p>\n<p>     18.     In para 11 of the cross examination, C.A. of the<\/p>\n<p>     plaintiff Laxman Sable deposed as follows :<\/p>\n<blockquote><p>             &#8220;What ever running bills we have produced on<br \/>\n             record are as per the measurement maintained                          by<br \/>\n             the defendants. It is true that whatever<br \/>\n             construction was completed that has been<br \/>\n             measured and we have submitted the running<br \/>\n             bills accordingly. There is no construction<br \/>\n             which is not measured for and about which no<br \/>\n             bill is prepared by me. &#8221;\n<\/p><\/blockquote>\n<blockquote><p>             This admission of the C.A. Of the plaintiff<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p><\/blockquote>\n<blockquote><p>                                          &#8211; 23 &#8211;\n<\/p><\/blockquote>\n<p>     also falsify the plaintiff&#8217;s that they                        defendants did<\/p>\n<p>     not measure the constructed work and running bills are<\/p>\n<p>     not paid accordingly.&#8221;\n<\/p>\n<\/p>\n<p>     19.    In   this    regard,      the    defendants         relied     upon      the<\/p>\n<p>     documentary evidence at Exhibit 150 to 154.                         Exhibit 150<\/p>\n<p>     is letter dated 25th June 1981 addressed to the plaintiff<\/p>\n<p>     by the defendants.         It is stated in this letter that they<\/p>\n<p>     have   supplied     the    required         cement     and         directed     the<\/p>\n<p>     plaintiff to start construction. Exhibit 151 is letter<\/p>\n<p>     dated 18th August 1982 addressed to the plaintiff by the<\/p>\n<p>     defendants.         This    letter          indicate       that     since     30th<\/p>\n<p>     September 1981 work is being stopped on site and the<\/p>\n<p>     defendants agreed to consider the extention of time for<\/p>\n<p>     construction of the building.                Exhibit 152 is the letter<\/p>\n<p>     dated 19th February 1982. in this letter complaint is<\/p>\n<p>     made by the defendants that though in the month of 1981<\/p>\n<p>     advance is paid to the plaintiff by running bills the<\/p>\n<p>     plaintiff did half of the slab work and then it was<\/p>\n<p>     stopped.      It    is    further      pointed       out     that    they     have<\/p>\n<p>     supplied      cement       for     first        slab         and     thereafter<\/p>\n<p>     construction       is    being   stopped.            The     defendants       also<\/p>\n<p>     pointed     out    that     work       of     the    plaintiff         was      not<\/p>\n<p>     satisfactory.       At exhibit 153 is letter dated 12th July<\/p>\n<p>     1982 by the defendants to the plaintiff.                      By this letter<\/p>\n<p>     it was pointed out to the plaintiffs that he has removed<\/p>\n<p>     the centering material from the site which                        is not proper<\/p>\n<p><span class=\"hidden_text\">                                                     ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                       &#8211; 24 &#8211;\n<\/p>\n<p>\n     behaviour.    Exhibit     154    is    letter       addressed        to     the<\/p>\n<p>     defendants by the plaintiff which show that due to rains<\/p>\n<p>     there was damage and therefore the plaintiff removed the<\/p>\n<p>     centering material from site.\n<\/p>\n<\/p>\n<p>     20.    If the correspondence produced by the defendants at<\/p>\n<p>     Exhibit     150    and   154    is    considered       in     its        proper<\/p>\n<p>     perspective then it is clear to our mind that there is no<\/p>\n<p>     substance in the contention of the                plaintiff         that the<\/p>\n<p>     construction work was stopped for want of cement bags.<\/p>\n<p>     The above documentary evidence coupled with the admitted<\/p>\n<p>     fact that the plaintiff received 3355 cement bags till<\/p>\n<p>     February    1982    do   show   that      the    plaintiff       failed      to<\/p>\n<p>     complete construction work in proportionate with supply<\/p>\n<p>     of cement bags by the defendants.\n<\/p>\n<\/p>\n<p>     21.    It is true that in resolution passed in the year<\/p>\n<p>     1983 and 1984 it is stated the the work of hospital<\/p>\n<p>     building could not be completed for want of supply of<\/p>\n<p>     cement and accordingly, escalation in rates were granted<\/p>\n<p>     to the plaintiff in        construction.           However, it is the<\/p>\n<p>     case of the defendants that family of the plaintiff is<\/p>\n<p>     influential and since 1974 members of the said family<\/p>\n<p>     were      continuously     municipal            councillors         of      the<\/p>\n<p>     defendants.       At one time there were 3 councillors from<\/p>\n<p>     the family of       the plaintiff         and brother       Laxman Sable<\/p>\n<p>     C.A.of the plainitiff and who was occupying position of<\/p>\n<p><span class=\"hidden_text\">                                                 ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                           &#8211; 25 &#8211;\n<\/p>\n<p>\n     President of the council.             It is the specific case of the<\/p>\n<p>     defendants    that    the     plaintiff&#8217;s       family       used     to     their<\/p>\n<p>     influence to get         undue advantage.              From    the evidence<\/p>\n<p>     produced      on    record      it      is     clear           that        entire<\/p>\n<p>     correspondence in respect of the subject matter of the<\/p>\n<p>     suit was made by Laxman Sable brother of the plaintiff<\/p>\n<p>     with the defendant-council.              Evidence was also given by<\/p>\n<p>     the said Laxman Sable on behalf of the said plaintiffs.<\/p>\n<p>     In these circumstances, the only inference can be drawn<\/p>\n<p>     is that though<br \/>\n                     ig   tender was         allotted and          agreement was<\/p>\n<p>     executed in the name of the plaintiff                      Ram Sable. Yet,<\/p>\n<p>     construction was undertaken by Laxman Sable who was at<\/p>\n<p>     the relevant time was councillor of the defendants.                             In<\/p>\n<p>     our opinion, it is highly inappropriate on the part of a<\/p>\n<p>     sitting councillor, to obtain contract of the municipal<\/p>\n<p>     council in which he is a municipal councillor either in<\/p>\n<p>     his name or in the name of the family member.                        We are of<\/p>\n<p>     the   clear    opinion      that     brother    of     the     plaintiff        by<\/p>\n<p>     utilising his position as councillors, and subsequently<\/p>\n<p>     as    President     of   the       municipal      council        got       passed<\/p>\n<p>     resolutions mentioned above. In that view of the matter,<\/p>\n<p>     in    our   view,    weightage        need     not    be     given      to     the<\/p>\n<p>     resolution    passed     in    the    years      1983      and    1986       while<\/p>\n<p>     arriving at a conclusion as to who is at fault especially<\/p>\n<p>     when witness of the plaintiff admitted that though the<\/p>\n<p>     plaintiffs had received 3355 cement bags till December,<\/p>\n<p>     1982 only 2355 cement bags were utilised till February<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                              &#8211; 26 &#8211;\n<\/p>\n<p>\n     1982.    We     find     substance        in      the    contention         of     the<\/p>\n<p>     defendants      that       the    plaintiff       was    and        in   fact     only<\/p>\n<p>     interested      in     getting      escalation           in    the       amount     of<\/p>\n<p>     construction       and      not    in     completing          the    construction<\/p>\n<p>     within    the      stipulated       time         under    the       agreement       in<\/p>\n<p>     question.       Thus, it is the plaintiff who has committed<\/p>\n<p>     breach of the terms and conditions of the agreement by<\/p>\n<p>     not completing the construction work and the defendants<\/p>\n<p>     thus cannot be held liable for the same.\n<\/p>\n<p>     22.     Once it is concluded that the defendants have not<\/p>\n<p>     committed any breaches of the agreement and it is the<\/p>\n<p>     plaintiff who has failed to complete the construction<\/p>\n<p>     work within the stipulated time then in our view, the<\/p>\n<p>     plaintiff is certainly not entitled for any damage under<\/p>\n<p>     any of the heads. However, since the evidence is adduced<\/p>\n<p>     by respective parties in this regard, we are dealing with<\/p>\n<p>     the same aspect hereinafter.\n<\/p>\n<\/p>\n<p>     23.     Firstly, we will deal with the plaintiff claim of<\/p>\n<p>     Rs.10,10,000\/-         towards      running       bills.       This      amount     is<\/p>\n<p>     claimed by the plaintiff on the basis of a writing dated<\/p>\n<p>     31st December 1990 at Exhibit 139 and resolution nos. 43<\/p>\n<p>     dated 9th May 1991 at Exhibit 163 and letter of the<\/p>\n<p>     President     of     the    defendant-         Municipal       council       to    the<\/p>\n<p>     Collector, Raigad dated 5th December, 1992 at Exhibit<\/p>\n<p>     149.     Exhibit 139 is the minutes of meeting.                                  These<\/p>\n<p><span class=\"hidden_text\">                                                        ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                         &#8211; 27 &#8211;\n<\/p>\n<p>\n     minutes are signed             by the   President of         the municipal<\/p>\n<p>     council and 8 others. C.A. of plaintiff Laxman Sable and<\/p>\n<p>     his wife are the signatories of these minutes.                          Wife of<\/p>\n<p>     Laxman Sable is shown as councillor of defendant-council.<\/p>\n<p>     Under these minutes the            meeting was called for settling<\/p>\n<p>     of the dispute between the parties and it was stated that<\/p>\n<p>     the    plaintiffs    has       filed    a   suit    for    damage       of     Rs.<\/p>\n<p>     36,00,000\/- from the defendants.                   It is further stated<\/p>\n<p>     that out of Rs.36,00,000\/- amount of Rs.10,00,000\/- is<\/p>\n<p>     towards the running bills and amount of Rs.26,00,000\/- is<\/p>\n<p>     towards damages.         It is further stated that the amount of<\/p>\n<p>     damages will be subject to the final hearing of the suit<\/p>\n<p>     and the plaintiffs should start work of construction of<\/p>\n<p>     hospital and complete the same within a period of one<\/p>\n<p>     year    and     within     8    days    from       the    commencement          of<\/p>\n<p>     construction an amount of Rs.10,00,000\/- is be given to<\/p>\n<p>     the plaintiffs.          Clause 5 of the minutes of the meeting<\/p>\n<p>     is    very    specific    under    which     final       decision      in    this<\/p>\n<p>     regard is to be taken after approval of the council and<\/p>\n<p>     secretary of the Urban Development Department.<\/p>\n<p>     24.    Exhibit 134 is the resolution no.43 passed on 9th<\/p>\n<p>     May 1991.      By this resolution the council considered the<\/p>\n<p>     representation of the plaintiff dated 16th May 1991 and<\/p>\n<p>     it is resolved that action regarding payment be taken in<\/p>\n<p>     accordance with rules after obtaining report from the PWD<\/p>\n<p>     of the government. It is further resolved that decision<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                           &#8211; 28 &#8211;\n<\/p>\n<p>\n     regarding       payment      to      the      plaintiff       be      taken       in<\/p>\n<p>     consultation        with      the     technical         Engineer         of      the<\/p>\n<p>     government.       It was further resolved that after obtaining<\/p>\n<p>     opinion    of     the     technical         expert     of    the     government<\/p>\n<p>     decision regarding increase in the construction rate as<\/p>\n<p>     per 1991-92 DSR be taken.\n<\/p>\n<\/p>\n<p>     25.     By a letter dated 5th December, 1992 President of<\/p>\n<p>     the     municipal         council     asked      permission           from       the<\/p>\n<p>     Collector, Raigad to pay to the plaintiff an amount of<\/p>\n<p>     Rs.10,10,000\/-.          At this stage, it is worthwhile to make<\/p>\n<p>     a reference to Exhibit 163.                 Exhibit 163 is the letter<\/p>\n<p>     dated 6th November, 1988              by the plaintiff to the Chief<\/p>\n<p>     Engineer     of    the     defendants.          By        this      letter       the<\/p>\n<p>     plaintiffs      agreed      that     advance     given      to     him    may     be<\/p>\n<p>     deducted from the running bills so as to enable him to<\/p>\n<p>     commence work. This writing was given by the plaintiffs<\/p>\n<p>     after     the     order     passed     by     the    government          granting<\/p>\n<p>     escalation in rates in construction as per resolution no.<\/p>\n<p>     57 of 1986 and prior to execution of the agreement dated<\/p>\n<p>     6th May 1988.            Exhibit 156 is the plaintiff&#8217;s letter<\/p>\n<p>     dated 25th May 1988 under which they have acknowledged<\/p>\n<p>     payment    of     Rs.6,21,496\/-       towards        running       bills.         Of<\/p>\n<p>     course this payment is accepted under protest.<\/p>\n<p>     26.     Exhibit     124 is the letter by the plaintiff to the<\/p>\n<p>     defendants&#8217; C.E.O. Under which he claimed payment of Rs.<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                           &#8211; 29 &#8211;\n<\/p>\n<p>\n     6,98,600.95          under   bill    dated     9th     January        1989.      In<\/p>\n<p>     pursuance      of     this   bill,    the     plaintiffs       were     paid     an<\/p>\n<p>     amount    of    Rs.6,21,496\/-        for    which     the    plaintiff        have<\/p>\n<p>     executed receipt on 25th June, 1986 which is at Exhibit<\/p>\n<p>     156.<\/p>\n<p>     27.     It is the specific case of the plaintiff that bill<\/p>\n<p>     of Rs.10,10,000\/- is due from the defendants as on 30th<\/p>\n<p>     September, 1988.         Plaintiff&#8217;s claim for Rs.10,10,000\/- is<\/p>\n<p>     falsified in view of the document at Exhibit 124 i.e<\/p>\n<p>     letter dated 31st January 1989 in which he claimed an<\/p>\n<p>     amount of Rs.6,98,600\/- as per bill dated 9th January<\/p>\n<p>     1989.    This claim of the plaintiff in letter dated 31st<\/p>\n<p>     January 1989 is made over and the same is evidenced by<\/p>\n<p>     document at Exhibit 156 which is receipt executed by the<\/p>\n<p>     plaintiff on 25th May 1988 acknowledging Rs.6,21,696\/-<\/p>\n<p>     under protest.          If the plaintiff as on 31st January 1989<\/p>\n<p>     claimed Rs.6,58,600\/- and the defendants on 25th May 1988<\/p>\n<p>     paid    to     the    plaintiff      Rs.6,21,096\/-       then      it    is     not<\/p>\n<p>     understood how the plaintiff could claim further amount<\/p>\n<p>     of Rs.10,10,000\/- claiming the same to be outstanding as<\/p>\n<p>     on 30th September, 1988.               Again at this stage, it is<\/p>\n<p>     relevant to mention that by document at Exhibit no.163<\/p>\n<p>     the    plaintiff       admitted      the    advance     given      to    him     by<\/p>\n<p>     deducting from four running bills.\n<\/p>\n<\/p>\n<p>     29.     In this context, it is the specific case of the<\/p>\n<p><span class=\"hidden_text\">                                                     ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                                &#8211; 30 &#8211;\n<\/p>\n<p>\n     defendants that the plaintiff must establish that the<\/p>\n<p>     claim of the outstanding amount of Rs.10,10,000\/- which<\/p>\n<p>     must be for the work done by him subsequent to execution<\/p>\n<p>     of agreement dated 16th May 1988.                          However, the plaintiff<\/p>\n<p>     have not given any particulars of this bill.                                The C.A.of<\/p>\n<p>     the plaintiff in para 14 of his cross examination has<\/p>\n<p>     specifically admitted that he has not produced any more<\/p>\n<p>     document        in     respect     of      Rs.10,10,000\/-.             He      was    also<\/p>\n<p>     confronted with letter dated 6th April 1988 at Exhibit<\/p>\n<p>     163.       A<\/p>\n<p>                      conjoint        reading         of     the      above      documentary<\/p>\n<p>     evidence only conclusion that can be arrived at by the<\/p>\n<p>     plaintiff claim of Rs.10,10,000\/- not towards the work<\/p>\n<p>     subsequent       to       the    execution         of      the    latter       agreement<\/p>\n<p>     but,the same is being claimed for the work by way of<\/p>\n<p>     escalation in the rates of construction for the work done<\/p>\n<p>     earlier between the period from 1980 to 1984 by way of<\/p>\n<p>     difference in the rate granted in 1980 and the rates<\/p>\n<p>     granted    under          the    orders     of     the      government         mentioned<\/p>\n<p>     above. In fact, it is clear from the government&#8217;s order<\/p>\n<p>     that the rate as per resolution no.57 of 1986 was to be<\/p>\n<p>     given     for        construction       which         is    to    be     carried        out<\/p>\n<p>     subsequent           to    the    order       and        not      to     the     earlier<\/p>\n<p>     construction which was completed prior to the date of the<\/p>\n<p>     order.\n<\/p>\n<\/p>\n<p>     30.     It is true that under Exhibit 139 it was agreed<\/p>\n<p>     that the amount of Rs.10,10,000\/-                          was to be paid to the<\/p>\n<p><span class=\"hidden_text\">                                                             ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                           &#8211; 31 &#8211;\n<\/p>\n<p>\n     plaintiff. However, this amount was to be given after<\/p>\n<p>     according necessary approval of the government and that<\/p>\n<p>     of the Secretary in the Urban Development                         Department.<\/p>\n<p>     It    appears    that      this   decision     was    influenced         by    the<\/p>\n<p>     plaintiff&#8217;s brother Laxman Sable and his wife who was<\/p>\n<p>     municipal councillor and who was present in the meeting.<\/p>\n<p>     On the basis of this document, there is no doubt in our<\/p>\n<p>     mind    that    the   so    called    decision       is   taken     under      the<\/p>\n<p>     influence of plaintiff&#8217;s             brother and          his wife.           This<\/p>\n<p>     minutes does not show the particulars of work completed<\/p>\n<p>     by the plaintiff.           Exhibit 147 is the copy of resolution<\/p>\n<p>     no.43 passed on 9th May 1991.                 This resolution does not<\/p>\n<p>     take the plaintiff&#8217;s case any further regarding payment<\/p>\n<p>     of Rs.10,10,000\/- in as much as in this resolution there<\/p>\n<p>     is     no   reference       regarding     outstanding         bill      of     the<\/p>\n<p>     plaintiff to the extent of Rs.10,10,000.- and therefore,<\/p>\n<p>     no relevant can be placed.\n<\/p>\n<\/p>\n<p>     31.     Letter   dated      5th   December,      1992      also     cannot      be<\/p>\n<p>     relied upon by the plaintiff in this regard.                          The said<\/p>\n<p>     letter is written by the President of the defendants.<\/p>\n<p>     This letter is sent in pursuant of the                      the resolution<\/p>\n<p>     dated 9th May 1991 which is at Exhibit 147.                          As stated<\/p>\n<p>     above, resolution at Exhibit 147 is silent about the so<\/p>\n<p>     called due payment of Rs.10,10,000\/- to the plaintiff.<\/p>\n<p>     Therefore, the plaintiffs cannot contend that in this<\/p>\n<p>     letter      President        of    the    defendants         admitted          the<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                                &#8211; 32 &#8211;\n<\/p>\n<p>\n     plaintiff&#8217;s claim for the due payment of Rs.10,10,000\/-.<\/p>\n<p>     32.    In the light of above we are of the clear opinion<\/p>\n<p>     that the plaintiffs have failed to establish his claim of<\/p>\n<p>     Rs.10,10,000\/- from the defendants.\n<\/p>\n<\/p>\n<p>     33.    The plaintiff claimed for damages of Rs.17,18,811\/-<\/p>\n<p>     towards the interest amount which were required to pay to<\/p>\n<p>     the    bank   due        to    delaying            tactics        adopted       by     the<\/p>\n<p>     defendants,<br \/>\n                     ig Rs.10,20,000\/-towards the rent of centering<\/p>\n<p>     materials     as    on    the       date        of    the    suit,Rs.3,13,600\/-,<\/p>\n<p>     towards payment of salary to the gateman and watchman,<\/p>\n<p>     Rs.65,000\/-towards            refund       of      security       deposit      and     Rs.<\/p>\n<p>     19,50,000\/- towards profit can be discussed hereinbelow:<\/p>\n<p>     34.    Let us consider the plaintiff&#8217;s claim one by one:<\/p>\n<p>            The    amount          of     Rs.17,18,811\/-               claimed       towards<\/p>\n<p>     interest which the plaintiff was required to pay to the<\/p>\n<p>     bank due to the delay in completing the project.                                     It is<\/p>\n<p>     case of the plaintiffs that he has taken a loan of Rs.<\/p>\n<p>     3,50,000\/- from the bank.                  It is the specific case of the<\/p>\n<p>     plaintiff     that       he    obtained              loan    from     the     Bank      of<\/p>\n<p>     Maharashtra for doing the work in question. PW1 in para<\/p>\n<p>     12    specifically       stated       that           there   is     no    documentary<\/p>\n<p>     evidence in his custody in respect of payment of Rs.<\/p>\n<p>     17,17,000\/-        to    the       bank    by        the    plaintiff.          He     has<\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                              &#8211; 33 &#8211;\n<\/p>\n<p>\n     contradicted        the    above        statement      by     saying      that      the<\/p>\n<p>     plaintiff obtained loan in the name of M\/s Sable and Co.<\/p>\n<p>     He has specifically admitted that he has not produced any<\/p>\n<p>     document on record for refund of loan amount or interest.<\/p>\n<p>     In this regard, he relied upon document at Exhibit 127.<\/p>\n<p>     However, he admitted that it is not mentioned in document<\/p>\n<p>     at Exhibit 127            that loan       amount of          Rs.3,50,000\/- and<\/p>\n<p>     interest thereon is due against the plaintiff Ram Sable.<\/p>\n<pre>\n\n\n\n\n                                        \n     It    is   not    disputed       that     amount      of     Rs.2,70,000\/-          was\n\n     initially\n                       \n                       given     to      the        plaintiff        by      defendants\n\n<\/pre>\n<p>     immediately upon execution of the first agreement towards<\/p>\n<p>     advance.     If that is so, it                   was not necessary for the<\/p>\n<p>     plaintiff        firstly    to     raise       loan    from      the     bank        on<\/p>\n<p>     undertaking execution of the construction work even if it<\/p>\n<p>     is assumed for the sake of argument that the respondents<\/p>\n<p>     obtained said loan from Bank of Maharashtra. However,<\/p>\n<p>     absolutely there is no material on record to come to the<\/p>\n<p>     conclusion        that     the    plaintiff           paid      amount       of     Rs.<\/p>\n<p>     17,00,000\/- towards interest to                    the bank which fact is<\/p>\n<p>     admitted by the C.A. Of the plaintiff.                          We have already<\/p>\n<p>     recorded     a    finding        that    the     construction        of     hospital<\/p>\n<p>     building was delayed because of the greedy attitude of<\/p>\n<p>     the plaintiffs. In that view of the matter, we are of the<\/p>\n<p>     clear opinion that           the plaintiff             failed to          prove his<\/p>\n<p>     claim for damages.\n<\/p>\n<\/p>\n<p>     35.    The       plaintiff        has     claimed       an     amount        of     Rs.<\/p>\n<p><span class=\"hidden_text\">                                                         ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                         &#8211; 34 &#8211;\n<\/p>\n<p>\n     3,13,600\/- towards salaries of watchman and gatekeepers.<\/p>\n<p>     In para 50 of the cross examination of the respondent;s<\/p>\n<p>     C.A. he has specifically admitted                    that in        respect of<\/p>\n<p>     payment of salaries of watchman and gatekeeper, there is<\/p>\n<p>     no documentary evidence. In this regard, the plaintiff<\/p>\n<p>     could not produce books of accounts to substantiate his<\/p>\n<p>     case. Be that as it may under Exhibit 154 the plaintiff<\/p>\n<p>     agreed that due to rainy reasons, to avoid damages he<\/p>\n<p>     removed the materials and machines. This was done in the<\/p>\n<p>     year   1982<\/p>\n<p>                    itself.      If   that       is    so,     then      it    is     not<\/p>\n<p>     understood as to why the plaintiff was required to engage<\/p>\n<p>     watchman      and     gatekeepers.           One      can      understand         if<\/p>\n<p>     machinery     of     the   plaintiff    is       lying    at    the      site    for<\/p>\n<p>     protection thereof.          He is required to engage watchman.<\/p>\n<p>     However,      this     machinery       and       materials       was      already<\/p>\n<p>     removed.      The plaintiff was not at all required to engage<\/p>\n<p>     watchman and gatekeepers to protect the same.                         In absence<\/p>\n<p>     of any material on record, the plaintiff cannot claim any<\/p>\n<p>     damage under this head.\n<\/p>\n<\/p>\n<p>     36.    The plaintiff has further claimed an amount of Rs.<\/p>\n<p>     10,20,000\/- towards rent of materials and machineries.<\/p>\n<p>     In order to          succeed in the plaint, the plaintiff are<\/p>\n<p>     expected to produce documents of accounts showing that he<\/p>\n<p>     paid amount for machineries.                 In para 14 C.A. Of the<\/p>\n<p>     plaintiff specifically deposed that he is not going to<\/p>\n<p>     produce any document in respect of account of centering<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                               &#8211; 35 &#8211;\n<\/p>\n<p>\n     machines claimed in the suit.                     Again in para 11 of the<\/p>\n<p>     cross examination contradictory statements are made.                                   At<\/p>\n<p>     one place it is stated that C.A. Of the plaintiff by name<\/p>\n<p>     Laxman Sable is owner of the material and at another<\/p>\n<p>     place it is stated that the plaintiff- Ram Sable was<\/p>\n<p>     owner of the centering machines. This material as per<\/p>\n<p>     document    at    Exhibit          154    was     already        removed       by     the<\/p>\n<p>     plaintiff. If that be so, then the question of damages<\/p>\n<p>     towards      rent       of         machines       does         not       arise        for<\/p>\n<p>     consideration.\n<\/p>\n<p>                       ig    The    plaintiff in              our view,         failed to<\/p>\n<p>     prove this damage under this head.\n<\/p>\n<p>     37.     The plaintiff claimed Rs.19,50,000\/- towards loss<\/p>\n<p>     of profit. It is clear that on the basis of 15,60,000\/-<\/p>\n<p>     under    this    head    it        is    clear    that        on     the    basis      of<\/p>\n<p>     resolution      no.147       dated       9th    May     1991.      The     resolution<\/p>\n<p>     however, was subject to approval by the technical officer<\/p>\n<p>     of the government.            There is no evidence on record that<\/p>\n<p>     this     resolution          was     subsequently            approved         by      the<\/p>\n<p>     government and therefore the plaintiff cannot rely upon<\/p>\n<p>     this resolution in order to claim loss of profit based on<\/p>\n<p>     DSR of 1990-92.         Be that as it may, we have already held<\/p>\n<p>     that the plaintiff and not the defendants has committed<\/p>\n<p>     breach of the terms and conditions of the agreement                                   The<\/p>\n<p>     plaintiff was only interested in hike in the rate of<\/p>\n<p>     construction and therefore he stopped the construction.<\/p>\n<p>     The    plaintiff    even       tried       to     extract        money      from      the<\/p>\n<p><span class=\"hidden_text\">                                                           ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                             &#8211; 36 &#8211;\n<\/p>\n<p>\n     defendants        utilising      his    influential            position        in     the<\/p>\n<p>     defendant-council.          In that view of the matter, we are of<\/p>\n<p>     the considered opinion that the plaintiff is not entitled<\/p>\n<p>     to claim damages under the head loss of profits.<\/p>\n<p>     38.   Now,    we     will   consider        the        counter       claim      of    the<\/p>\n<p>     defendants.          The    defendants           made        counter      claim       for<\/p>\n<p>     recovery     of    Rs.5,18,937\/-.               Out     of    this      amount,       Rs.<\/p>\n<p>     5,50,000\/- is towards recovery of advance and amount of<\/p>\n<p>     Rs.63,937\/- is towards cost of the unutilised cement bags<\/p>\n<p>     by the plaintiff.\n<\/p>\n<p>     39.   The    evidence       of    the     Engineer           of   the     defendants<\/p>\n<p>     disclosed that there is no proof for payment of advance.<\/p>\n<p>     In our view, the defendant&#8217;s claim made in the counter<\/p>\n<p>     claim cannot be granted for want of particulars in the<\/p>\n<p>     evidence adduced by them on their behalf. The defendants<\/p>\n<p>     have paid running bills of the plaintiff as on 25th May<\/p>\n<p>     1988 which is evidenced by                 at document at Exhibit 56.<\/p>\n<p>     Regarding unutilised cement bags by the plaintiff there<\/p>\n<p>     are   no    satisfactory         evidence.            In     that     view     of     the<\/p>\n<p>     matter, we are           not inclined           to entertain            the counter<\/p>\n<p>     claim of the defendants.\n<\/p>\n<\/p>\n<p>     40.   Taking over all view of the matter, we are of the<\/p>\n<p>     view that the plaintiff has failed to prove that the<\/p>\n<p>     defendants        have   committed       breaches            in   the     agreement,<\/p>\n<p><span class=\"hidden_text\">                                                           ::: Downloaded on &#8211; 09\/06\/2013 15:14:02 :::<\/span>\n<\/p>\n<p>                                         &#8211; 37 &#8211;\n<\/p>\n<p>\n     further    the     plaintiff   failed       to     prove      his     claim      for<\/p>\n<p>     damages.     At the same time, the defendants also failed to<\/p>\n<p>     prove its counter claim.            We accordingly, quash and set<\/p>\n<p>     aside the impugned judgment of the lower court. Special<\/p>\n<p>     Civil Suit No.91 of 1992 on the file of the Civil Judge,<\/p>\n<p>     Sr.Division, Panvel         is dismissed with costs.                      Counter<\/p>\n<p>     claim of defendants also stands dismissed.<\/p>\n<p>     41.    This Court admitted the First Appeal on 17th July,<\/p>\n<p>     1998. and stay was granted to the effect and operation of<\/p>\n<p>     the impugned judgment and decree on the condition that<\/p>\n<p>     the defendants shall deposit the entire decreetal amount<\/p>\n<p>     of    Rs.75,00,000\/-.      This      amount         was     allowed        to     be<\/p>\n<p>     withdrawn     by     the   plaintiff         after         furnishing           bank<\/p>\n<p>     guarantee.       The    plaintiff pursuant             to this        order has<\/p>\n<p>     withdrawn     the      decreetal     amount         on     furnishing           bank<\/p>\n<p>     guarantee     Since we have dismissed the suit the plaintiff<\/p>\n<p>     is directed to re-deposit the said amount                       in this court<\/p>\n<p>     within a period of eight weeks from today.<\/p>\n<pre>     R.V.More, J                                               P.B.Majmudar, J\n\n\n\n\n<span class=\"hidden_text\">                                                      ::: Downloaded on - 09\/06\/2013 15:14:02 :::<\/span>\n            - 38 -\n\n\n\n\n                                            \n                    \n                   \n          \n       \n      \n      \n   \n\n\n\n\n\n\n<span class=\"hidden_text\">                    ::: Downloaded on - 09\/06\/2013 15:14:02 :::<\/span>\n <\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court Khopoli Municipal Council } vs Smt Chanda R.Sable } on 16 October, 2009 Bench: P. B. Majmudar, R. V. More &#8211; 1 &#8211; IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION FIRST APPEAL NO.433 OF 1998 1. Khopoli Municipal Council } at and Post: Khopoli Taluka } Taluka Khalapur,District [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11,8],"tags":[],"class_list":["post-43345","post","type-post","status-publish","format-standard","hentry","category-bombay-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Khopoli Municipal Council } vs Smt Chanda R.Sable } on 16 October, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/khopoli-municipal-council-vs-smt-chanda-r-sable-on-16-october-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Khopoli Municipal Council } vs Smt Chanda R.Sable } on 16 October, 2009 - Free Judgements of Supreme Court &amp; 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