Case Note & Summary
The present Commercial Appeal arises from a judgment and decree dated 09/08/2019 passed by the learned District Judge-1, Jalna, in Commercial Suit No.08 of 2019, whereby the suit for recovery of Rs.5,76,25,112/- with interest was decreed. The appellants, original defendants, are officers of GMIDC and CADA, aggrieved by the decree. The respondent No.1, original plaintiff, M/s Gurunanak Industries (now GNI Infrastructure Pvt. Ltd.), had been awarded a contract for construction of Nimna Dudhana Project earthen dam on 16/03/1995. The stipulated completion period was 24 months up to 15/03/1997, but extensions were granted up to 30/06/2003. The plaintiff claimed that the site was not made available in entirety, causing delays, and that extra work was added. The plaintiff filed the suit for recovery of the amount allegedly due. The trial court, without framing any issues and without recording evidence, decreed the suit. The defendants appealed. The High Court found that the trial court had not framed issues as required under Order 14 Rule 1 CPC, and no trial was conducted. The court held that the judgment was unsustainable and caused prejudice to the defendants. The court allowed the appeal, set aside the decree, and remanded the suit to the trial court for fresh disposal after framing issues and giving both parties opportunity to lead evidence. The court directed the trial court to dispose of the suit expeditiously, preferably within one year. No order as to costs.
Headnote
A) Civil Procedure - Remand - Order 41 Rule 23 CPC - Failure to Frame Issues - The trial court decreed the suit without framing any issues and without recording evidence, causing prejudice to the defendants. Held that the judgment is unsustainable and the matter must be remanded for fresh disposal after framing issues and giving opportunity to lead evidence. (Paras 1-24) B) Commercial Law - Contract - Recovery of Amount - The plaintiff sought recovery of Rs.5,76,25,112/- for work done under a construction contract. The trial court decreed the suit without trial. Held that the decree is set aside and the suit is remanded for fresh adjudication. (Paras 1-24)
Issue of Consideration
Whether the impugned judgment and decree passed by the trial court without framing issues and without conducting a trial is sustainable in law.
Final Decision
Appeal allowed. Impugned judgment and decree set aside. Suit remanded to trial court for fresh disposal after framing issues and giving opportunity to lead evidence. Trial court to dispose of suit expeditiously, preferably within one year. No order as to costs.
Law Points
- Commercial Suit
- Recovery of Amount
- Contractual Dispute
- Remand
- Order 41 Rule 23 CPC
- Failure to Frame Issues
- No Trial
- Prejudice to Defendants
