1961 (2) TMI 82 - SC - Indian Laws

Summary

Issues:
1. Dispute over compensation for construction work done on a property.
2. Interpretation of written agreements and oral agreements between the parties.
3. Assessment of compensation for additional construction work not covered in the original agreement.
4. Claim for loss due to defective work as an equitable set off.

Detailed Analysis:

1. The appellant, the owner of a property, entered into a written agreement with a building contractor for construction work. Disputes arose regarding the quality of work and compensation. Both parties claimed oral agreements for additional work not covered in the original contract.

2. Multiple suits were filed by both parties in the trial court, leading to decrees that were appealed in the High Court. The High Court set aside the decrees and remanded the proceedings to determine the compensation for additional work with the appointment of a qualified engineer as a Commissioner.

3. The High Court held that the respondent was entitled to compensation at prevailing market rates for constructions not covered in the written agreements. Specific rates were awarded for various additional constructions, and the court directed assessment based on approved rates for fair compensation.

4. The appellant argued that the respondent failed to prove the oral agreements and that compensation should not have been awarded beyond the pleaded cause of action. However, the court found that the respondent was entitled to compensation under Section 70 of the Contract Act for the value of services rendered.

5. The appellant also claimed a loss due to defective work as an equitable set off in the respondent's claims. The High Court dismissed the appellant's claim, stating that seeking re-agitation of the issue without appealing the initial decree was not permissible.

6. The Supreme Court dismissed the appeals, upholding the High Court's decision on compensation for additional work and the rejection of the equitable set off claim. The court found no merit in the contentions raised and ordered the appeals to be dismissed with costs.