1937 (12) TMI 11 - HC - Indian Laws

Summary

Issues:
1. Abandonment of original scheduled rates by mutual consent.
2. Determination of fair and reasonable rates for work done.
3. Entitlement to interest on withheld payment.

Detailed Analysis:

Issue 1: The main issue in this case revolved around whether the original scheduled rates for work done by the contractor were abandoned by mutual consent of both parties. The trial Judge and the High Court concluded that the original rates were indeed abandoned with consent. The railway proposed enhanced rates, but the contractor found them inadequate. Despite the absence of new rates, the contractor continued the work, and the railway accepted it. The Courts upheld the abandonment of original rates based on evidence and conduct of the parties.

Issue 2: The determination of the price for the work done was crucial. The Courts decided that the contractor was entitled to recover a fair and reasonable amount from the railway. The trial Judge assessed the price at a certain sum, which was reduced on appeal by the High Court. The final amount to be recovered was established, and it was concluded that the plaintiffs were entitled to recover that specific sum from the railway.

Issue 3: The question of entitlement to interest on the withheld payment arose. The plaintiffs claimed interest from the date the payment was due. The High Court allowed interest at a specific rate from the date of the trial Court's decree to the date of payment. However, the rate of interest for the period prior to the institution of the suit was disputed. The Courts analyzed various legal provisions and held that interest could be awarded under Section 34 of the Civil Procedure Code. The final decision included the calculation of interest on the principal sum due from the date of the suit to the date of the decree, and further interest on the adjudged sum until payment.

In conclusion, the judgment addressed the issues of abandonment of original rates, determination of fair pricing, and entitlement to interest comprehensively, providing a detailed analysis of the legal aspects involved in each issue.