A K GUPTA AND SONS LIMITED Vs. DAMODAR VALLEY CORPORATION
LAWS(SC)-1965-9-24
SUPREME COURT OF INDIA (FROM: PATNA)
Decided on September 10,1965

A.K.GUPTA AND SONS LIMITED Appellant
VERSUS
DAMODAR VALLEY CORPORATION Respondents

JUDGEMENT

- (1.) The question raised in this appeal is whether the High Court was in error in refusing permission to the appellant to amend its plaint. We think it was.
(2.) The appellant had done work for the respondent under a contract which' only specified the rates for different categories of work. The contract contained the following clause: "This quotation is based on prevailing labour rate of Rs. 1-4-0 per cooly but if there is increase of labour rate of more than 10 per cent in any particular month the proportionate increase in rate will be charged". Subsequent to the making of the contract there was an increase in the labour rate per cooly by 20 per cent. The appellant claimed that under the clause it was entitled to the whole amount of the increase while the respondent contended that it was entitled to a part of it only. This was the only dispute between the parties in respect of the contract. There was no other dispute either concerning the quantity or quality of the work done or otherwise howsoever.
(3.) The appellant filed a suit against the respondent only claiming a declaration that on a proper interpretation of the clause it was entitled to an enhancement of 20 per cent over the tendered rates as the sole difference between the parties was about the interpretation. The plaint stated that work had been done under the contract and that the value of the suit for purposes of jurisdiction was Rs. 65,000, but as it was a suit for a declaration only court-fees on that basis had been paid. The respondent in its written statement challenged the appellant's interpretation of the clause but did not dispute any material fact or that the only dispute was about the interpretation. The written statement concluded by saying that the respondent "was ever ready and willing and is still really and willing to pay the legitimate due to the plaintiff ".;


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