Suit for damages for breach of contract...
Suresh Babu Rai
(Querist) 20 September 2013
This query is : Resolved
Respected Members!
I have filed a suit for damages for an amount of Rs.40,00.00/- on the file of IV Addl. District Judge. The facts of the case are:
An engineering college was established at my village and the same is functioning under an Autonomous University. It was a new establishment and due to non availability of accommodation, the Registrar of so called university and the principal of engineering college (affiliated college to above university) intended to provide private hostel facility to their admitted students at my village as such they have offered my client to provide hosted facility to their admitted students. They have exchanged the letter of communications such as willingness, rules and regulations.
My client has accepted for the said offer of both and 150 members have become her hostellers. My client and the principal of college have entered in to an agreement, which was reduced on a 100/- non judicial stamp paper. The outlines of agreement:
i. This agreement is valid for two academic years i.e. August.2011 to August.2013.
ii. Either of the party may terminate this Agreement hereunder, for their convenience by giving 3 prior notices to the other party.
iii. Any dispute, controversy or claim shall be finally settled within the jurisdiction of my district.
The principal used to pay the agreed amount for my hostellers through cheques every month. Almost a year there is no dispute and the performance of contract was going smoothly and healthily.
When the permanent structures (Buildings) were ready, it is very unfortunate that the Principal of so called college has shifted my hostellers without intimating my client or without issuing any prior notice of 3 months as agreed in the agreement signed by the principal and my client inform of witnesses.
I have issued a legal notice to pay an amount of Rs.9,00.000/- towards 3 months hostel charges for the hostellers of my client and Rs.1, 00,000/- towards loss of food grains and all. I have also mentioned in my legal notice that on failure to meet my demand to pay the above amount I will initiate legal proceedings against them for damages and loss sustained by my client.
Neither of them have replied for my notice nor paid the agreed the amount as demanded by client. Failure on the part of above, I have filed suit as stated above. Both as the principal of college and Registrar of University were set ex parte and subsequent proceedings the suit is adjourned for arguments.
I have claimed an amount of Rs. 9L for 3 months amount.
Also claimed an amount of Rs.1L for loss of food grains.
Rs.30, 00,000/-for purchasing of utensils, rice, advancing for accommodation, electricity charges, staff salaries and etc.
While my arguments are going on learned Judge asked these questions to satisfy him
1) Whether the Registrar of University is also laiable to pay the suit amount as prayed for ( As I have taken a plea that the defendant No.1 {Principal} and the defendant No.2 are jointly and severally liable to pay the suit amount.
2) I have no objection to grant an amount of Rs.10 L as damages for breach of contract from the defendants, but how come I grant the remaining amount of 30 L for utensils, advancement of utensils, worker salaries etc..
Pls guide me properly to get my suit decreed..
Thank you one and all particularly who paid attention against my query.
Yours sincerely,
ajay sethi
(Expert) 21 September 2013
rgistrar would also be liable if you had received communciation from the registrar to provide hostel facilites for students .
your claim of rs 30 lakhs for purchase of utensils etc would not be granted .
confine your claim for the 3 months notice period ie amount of Rs 10 lkahs
Suresh Babu Rai
(Querist) 21 September 2013
Thank you SIr!
But I can claim such 30 L according to the quantum of meruit. Is it so sir?
ajay sethi
(Expert) 21 September 2013
you have to justify your claim for rs 30 lakhs . you need not retain the staff after the students shifted to another hostel .similarly your electricity bills would decline once students vacated the premises . to my mind your claim of Rs 30 lakhs cannot be justified
prabhakar singh
(Expert) 21 September 2013
The agreement has already fixed the maximum
limit of damages beyond which no damages can be granted even if the same gets proved,The registrar has not signed the agreement and is not liable for breach of agreement unless
there is evidence to prove he stood surety to the agreement.
Raj Kumar Makkad
(Expert) 22 September 2013
I do endorse the avice of Mr. Singh.
Suresh Babu Rai
(Querist) 23 September 2013
The principles of quantum meruit is rooted in law under which there were certain procedural advantages in framing an action for compensation for work done. In order to avail of the remedy under quantum meruit, the original contract must have been discharged by the defendant in such a way as to entitle the Plaintiff to regard him as discharged from any further performance and must have elected to do so.
This remedy by way of quantum meruit is restitutory that is recompense for the value of the work done by the Plaintiff in order to restore him to the position which he would have been in if the contract had never been entered in to.
A.T. Brij Singh and Bros. VS. State of Gujarat, AIR 1984 (SC) 1703: 1984 (4) SCC 59.
Damages for breach of contract- Works Contract-Party entrusting work commits the breach-Held that contractor would be entitled to claim damages for loss of profit he expected to earn by undertaking the works contract.
Oil and Natural Gas Corporation Lts. VS Saw Pipes Ltd, 2003 AIR (SC) 2629.
2003 (5) SCC 705.
2003 (4) JT 171.
2003 (4) Scale 92.
2003 (3) Supreme 449.
2003 (3) SLT 324.
2003 (2) Arb LR5.
2003 (2) R.A.J1.
Contract Act 1872, Sections 73 and 74- Calculation damages and compensation-
If the compensation named in the contract is by way of penalty, consideration would be different a party is only entitled to reasonable compensation for the loss suffered.
If the compensation named in the contract for such breach is genuine per-estimate of loss which the parties knew when they made the contract to likely to result from the breach of it, there is no question of proving such loss and Court can award the same.
Determination of damages and compensation-
Court is competent to award reasonable compensation in case of breach even if no actual damage is proved to have been suffered- Held that every case of breach of contract, the person aggrieved by the breach is not required to prove actual loss or damages suffered by him before he can claim a decree.
Thank You one and all !
