Case Note & Summary
The petitioner, a contractor and builder, filed a writ petition seeking direction to the respondent, Maharashtra Housing & Area Development Authority (MHADA), to pay Rs. 74,79,081 with interest for work done under a tender contract for Urban Renewal Scheme at Shroff Building, Mumbai. The respondent had accepted the petitioner's lowest offer of Rs. 1,74,88,326 on 1st November 1994, with work to start from 21st November 1994 and complete by 20th May 1996. However, due to encroachments on the site, work could not proceed until 22nd May 1995 after the respondent cleared them through court. The petitioner completed the work, but the respondent failed to pay the full amount. The petitioner claimed Rs. 74,79,081 as balance due. The respondent did not dispute the work done but argued that the amount claimed was excessive. The court found that the respondent had admitted the work was done and the petitioner's claim was supported by evidence. The court directed the respondent to pay Rs. 74,79,081 with interest at 9% per annum from the date of the petition until realization. The petition was allowed with costs.
Headnote
A) Contract Law - Payment for Work Done - Quantum Meruit - The petitioner contractor completed work under a tender contract; respondent admitted the work was done but disputed the amount. Court held that since the respondent did not dispute the work done and the petitioner's claim was supported by evidence, the respondent must pay the admitted amount with interest. (Paras 1-6) B) Interest - Delayed Payment - Section 34 CPC - The court awarded interest at 9% per annum from the date of the petition until realization, as the respondent delayed payment without justification. (Para 6)
Issue of Consideration
Whether the respondent is liable to pay the petitioner the amount claimed for work done under the contract, and whether interest is payable on delayed payment.
Final Decision
The petition is allowed. The respondent is directed to pay the petitioner an amount of Rs. 74,79,081 with interest at 9% per annum from the date of the petition until realization. The respondent shall also pay costs of the petition.
Law Points
- Contractual obligation to pay for work done
- interest on delayed payment
- no dispute on quantum of work
