Case Note & Summary
The appellant, Jayaswal Ashoka Infrastructures Pvt. Ltd., was the original defendant in a suit filed by the respondent, Pansare Lawad Sallagar, a partnership firm providing consultancy services in arbitration matters. The respondent claimed that the appellant approached them for consultation regarding disputes with the State Government, and an agreement was entered into on 14/08/2007. Under the agreement, the respondent was to represent the appellant in arbitration proceedings and was entitled to fees: 1% of the award amount up to Rs.1,00,00,000/- and 1.50% of the award amount exceeding Rs.1,00,00,000/-. The respondent participated in the arbitration proceedings and, based on the result, raised a claim of Rs.1,28,37,817/- for services rendered. The appellant denied the claim, asserting that no such fee agreement was accepted and that the agreement was not binding. The trial court decreed the suit in favor of the respondent, directing payment of the claimed amount with 9% interest per annum. The appellant appealed under Section 96 of the Code of Civil Procedure, 1908. The High Court examined the evidence, including the testimony of the respondent's partner and documents, and found that the agreement was duly proved and binding. The court noted that the appellant's denial was not supported by evidence. The court upheld the trial court's decree, finding no merit in the appeal, and dismissed it with costs.
Headnote
A) Civil Procedure - Appeal under Section 96 CPC - Decree for recovery of money - The appellant-defendant challenged the trial court decree directing payment of Rs.1,28,37,817/- with 9% interest per annum for consultancy services in arbitration proceedings. The court upheld the decree, finding that the agreement dated 14/08/2007 was duly proved and binding, and the plaintiff had rendered services as per the agreement. (Paras 1-13) B) Contract Law - Proof of Agreement - Binding Nature - The defendant denied the agreement but the plaintiff proved its execution through partner testimony and documents. The court held that the agreement was binding and the defendant's denial was not substantiated. (Paras 2-10) C) Interest - Award of Interest - The trial court awarded 9% interest per annum on the principal amount. The appellate court found no reason to interfere with the rate of interest. (Para 12)
Issue of Consideration
Whether the agreement dated 14/08/2007 between the parties was duly proved and binding on the defendant, and whether the plaintiff was entitled to the claimed amount of Rs.1,28,37,817/- with interest.
Final Decision
Appeal dismissed with costs. The decree passed by the trial court is confirmed.
Law Points
- Section 96 CPC
- Contractual obligation
- Proof of agreement
- Binding nature of signed contract
- Interest on due amount
