2007 (11) TMI 707 - SC - Indian Laws

Summary

Issues Involved:
1. Jurisdiction of the Court.
2. Appointment and performance of the contractor.
3. Entitlement to enhanced rates for stevedoring and transportation.
4. Quantum meruit applicability.
5. Interest on the claimed amount.

Summary:

Jurisdiction of the Court:
The learned Civil Judge (Court No. 14), Ahmedabad, determined that the Court had jurisdiction to entertain the suit.

Appointment and Performance of the Contractor:
The plaintiff was appointed as a contractor for stevedoring, clearance, and transportation at Kandla Port pursuant to the tender. The plaintiff carried out the work of transport and handling cargo as per the terms and conditions of the tender. The plaintiff was unloading more than the stipulated quantity in the tender.

Entitlement to Enhanced Rates for Stevedoring and Transportation:
The trial court found that the plaintiff was entitled to the contractual rate of Rs. 108/- per M.T. and not the claimed enhanced rate of Rs. 215/- per M.T. The claim for enhanced transportation charges was also denied. The High Court, however, reversed the trial court's judgment, holding that the plaintiff was entitled to extra remuneration for extra work performed, applying the principle of quantum meruit. The High Court decreed the suit for Rs. 68,02,973/- with interest at 6% per annum.

Quantum Meruit Applicability:
The High Court applied the principle of quantum meruit, stating that since no negotiation took place despite the plaintiff's written requests, the plaintiff was entitled to compensation for the extra work performed. The Supreme Court, however, directed that the plaintiff be paid at the rate of Rs. 108 per M.T. for up to 750 M.T. and Rs. 215 per M.T. for quantities beyond that. The claim for enhanced transportation charges at Rs. 45 per M.T. was not substantiated and thus denied.

Interest on the Claimed Amount:
The interest rate was fixed at 6% per annum as determined by the High Court.

Final Decision:
The Supreme Court allowed Civil Appeal No. 7440 of 2000 to the extent of modifying the payment rates and dismissed Civil Appeal No. 2540 of 2002 filed by the respondent. No order as to costs in both appeals.