- (1.) Civil Appeal No. 3484 of 1997 has been preferred by the Food Corporation of India and others against the judgment and decree passed by the Madhya Pradesh High Court only partly allowing their appeal and modifying the decree of the trial Court to a limited extent to the effect that the respondent would be entitled to damages to be calculated after deducting 6% of the amount payable. The rest of the judgment and decree as passed by the trial Court has been upheld.
(2.) Whereas Civil Appeal No. 3485 of 1997 has been preferred by M/s. Babulal Agarwal (the plaintiff), against the same judgment and order passed by the Madhya Pradesh High Court, partly modifying the decree of the trial Court permitting deduction of 6% from the amount of damages as decreed by the trial Court. For the sake of convenience, the parties shall be referred as plaintiff and defendant as in the original suit filed by M/s. Babulal Agrawal.
(3.) The Food Corporation of India (for short 'FCI') invited tenders for hiring plinths for storing foodgrains. The plaintiff submitted his tender which was ultimately accepted vide letter dated 11-6-1985. The rent was to be @ 40 paisa per sq. ft. The acceptance of tender and the conditions of contract had again been confirmed by the letter dated 19-8-1985 written by the Regional Manager. An agreement dated 12-2-1986 was entered into between the parties. The case of the plaintiff is that the defendant had given out to hire the plinths for a period of three years with an option to the defendant to extend by another year. The construction of plinth etc. could not be constructed within the time as agreed. However, ultimately it is undisputed that the same were completed and handed over to the defendant on 24-1-1987. No formal lease deed was executed. The defendant on 26-9-1988 gave 15 days' notice for vacating the plinths and vacated the same on 10-10-1988. The rent upto the said period was paid. According to the plaintiff it amounted to breach of the terms of the contract by the defendant, hence filed a suit for damages for an amount of Rs. 17 lacs and odd. The trial Court decreed the suit for a total sum of Rs. 17,32,709/- with an order for refund of the security and interest thereon. The plaintiff was also allowed interest on the decretal amount @ 6% p.a. from the date of suit namely, 4-10-1991 till the date of payment.;