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Issues Involved:
1. Validity of the contract under Section 175(3) of the Government of India Act, 1935. 2. Applicability of Section 70 of the Indian Contract Act. 3. Whether the claim was barred by limitation. 4. Liability of the Province of Bengal devolving upon the appellant under the Indian Independence (Rights, Property, and Liabilities) Order, 1947. 5. Applicability of Section 65 of the Indian Contract Act. Issue-wise Detailed Analysis: 1. Validity of the contract under Section 175(3) of the Government of India Act, 1935: The respondent, B.K. Mondal & Sons, claimed payment for construction works done for the appellant, the State of West Bengal, either under a contract or under Section 70 of the Indian Contract Act. The appellant argued that the requests for construction were invalid and unauthorized, thus not constituting a valid contract under Section 175(3) of the Government of India Act, 1935. The trial judge found that there was no valid and binding contract between the parties because the contracts were not executed by persons duly authorized by the Governor, as required by Section 175(3). This finding was in favor of the appellant. 2. Applicability of Section 70 of the Indian Contract Act: Despite the invalidity of the contract, the trial judge held that the respondent's claim was justified under Section 70 of the Indian Contract Act. Section 70 states that if a person lawfully does something for another person, not intending to do so gratuitously, and the other person enjoys the benefit thereof, the latter is bound to make compensation to the former. The court found that the respondent had lawfully done the work, not intending to act gratuitously, and the appellant had enjoyed the benefit. Thus, the respondent was entitled to compensation. This finding was upheld by the appellate court and the Supreme Court. 3. Whether the claim was barred by limitation: The trial judge concluded that the respondent's claim was not barred by limitation. This finding was also upheld by the appellate court and the Supreme Court, implying that the claim was made within the legally permissible time frame. 4. Liability of the Province of Bengal devolving upon the appellant under the Indian Independence (Rights, Property, and Liabilities) Order, 1947: The trial judge rejected the appellant's plea that the liability of the Province of Bengal had not devolved upon the appellant under the Indian Independence (Rights, Property, and Liabilities) Order, 1947. This finding was also upheld by the appellate court and the Supreme Court, confirming that the appellant was liable for the claims made by the respondent. 5. Applicability of Section 65 of the Indian Contract Act: The trial judge held that Section 65 of the Indian Contract Act, which deals with the obligation of a person who has received an advantage under a void agreement or contract that becomes void, did not apply to the facts of the case. This finding was in favor of the appellant and was not contested further. Judgment Summary: The Supreme Court dismissed the appeal by the State of West Bengal and upheld the findings of the lower courts. The court confirmed that the contracts were invalid under Section 175(3) of the Government of India Act, 1935, but the respondent was entitled to compensation under Section 70 of the Indian Contract Act. The claim was not barred by limitation, and the liability of the Province of Bengal had devolved upon the appellant. Section 65 of the Indian Contract Act did not apply to the case. The Supreme Court emphasized that Section 70 deals with relationships resembling those created by contract and provides for compensation where the conditions of lawful doing, non-gratuitous intent, and acceptance of benefit are met. The appeal was dismissed with costs.
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