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[Cites 10, Cited by 0]

Delhi District Court

Mrs. Savita Mehta vs M/S Chandan & Chandan Enterprises Pvt. ... on 19 September, 2016

         IN THE COURT OF SH. SHAILENDER MALIK:
         ADJ­16(Central)TIS  HAZARI COURTS: DELHI 

CS NO. 167/2016/08
New Case No.  611673/16



Mrs. Savita Mehta
W/o Late Sh. Nanak Chand Mehta
A­228, Defence Colony,
New Delhi - 110024                                      ...... PLAINTIFF



                                       VS. 

M/s Chandan & Chandan Enterprises Pvt. Ltd. 
Through its Chairman & Managing Director
Col. M.L. Chandan (Rtd.)
D­47,  Defence Colony, 
New Delhi ­ 110024                     ..... DEFENDANT



DATE OF INSTITUTION   :          06.09.2008
DATE OF ARGUMENTS   :           03.09.2016
 DATE OF JUDGMENT     :          19.09.2016



JUDGMENT:

1.   This is a suit for   recovery of money/damages along with interest. The plaintiff is stated to be a 77 years old widow and retired   school   teacher.     Defendant   is   a   company     duly incorporated under the Companies Act having engaged   in the CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 1 of 53 business   of   construction.   Plaintiff's   husband   late   Mr.   Nanak Chand Mehta was the owner of  lease hold residential  Plot  at A­228,   Defence   Colony,   New   Delhi   measuring     217   Sq.   Yds. allotted by L&D.O.  under registered sale deed dated 26.4.2000. Late Sh. Nanak Chand Mehta had  converted the said property into free hold vide registered conveyance deed dated 18.09.2000.

2.   Since   the   plaintiff's   husband   was   a   Cancer   patient   and had   to   incur   heavy   expenditure   on   his   treatment.   Being   a pensioner he decided to   supplement his income with a rental income   and   with   this   idea   in   mind   the   husband   of   plaintiff stated to have entered into a Property Development Agreement dated   16.01.2004   with   the   defendant   company.     As   per   such agreement   defendant   was   required   to   demolish   the   existing structure   of   the   property   in   question   and   to   construct   in   its place a new building comprising of ground floor, first floor and second floor along with servant quarters and bathroom/toilets on the terrace as per agreed plans and specifications at the cost and risk of the defendant.

CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 2 of 53

3. Under the said agreement it was agreed that owner of the property will retain the ownership of the ground floor (including front court yard and rear court yard), second floor and terrace along with 70% indivisible share   in the   land underneath the built up structure. It was also agreed that owner of the property will have right to use the two servant quarters with bathroom/ toilets on the terrace whereas defendant will have first floor of the   property   along   with   30%   indivisible   share   in   the   land underneath the structure. Defendant  was also entitled to use one   servant   quarter     with     common   bathroom/toilet   on   the terrace.

4.  As per the above said agreement on 16.1.2004 owner of the property vacated the same and handed over its possession to defendant   for   commencement   of   the   demolition   work   and construction work on it.  Husband of the plaintiff  Nanak Chand Mehta   expired   on   15.5.2004   during   the   period   when development   work   on   the   property   was   going   on.     Plaintiff stated to have succeeded to the Estate of her deceased husband by virtue of registered Will dated  26.11.2001 as well as because CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 3 of 53 of registered Relinquishment deed  dated 18.9.2007.

5.  It   is   stated   that   as   per   clause   13   of   the   Property Development Agreement, defendant was required to commence and   complete   the   demolition   and   construction   of   the   new building   as   per   specifications   within   the   period   of   9   months from   the   date   of   agreement   i.e.   16.1.2004.   It   was   further stipulated that time being essence of the agreement, in case of delay in completion of building, defendant/developer would be liable to pay to owner Rs. 25,000/­ per month for 10 th  and 11th month and Rs. 50,000/­ per month from the 12 th month onwards. Delay beyond the period of 12 months would entitle the owner to terminate the agreement in accordance with clause 27 of the agreement. It is further stated that defendant failed to complete the construction of the building as per specifications and plans mentioned in the agreement within the stipulated period.  Due to delay   plaintiff moved into the new building in March 2005 instead of October 2004.  As such there was delay of five months and as per clause 13 of the agreement. Defendant was liable to pay sum of Rs. 2,00,000/­ to the plaintiff for delay in completion CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 4 of 53 of construction work for five months.

6.  It is stated that even plaintiff when moved into building in March  2005, defendant had left certain areas of the building unfinished, promising   to finish them   at a later date. Type of material   used   in   the construction of building was not as per the specifications as Schedule B to the Development Agreement. It was also agreed that if the actual material used was costlier then the contracted material, the plaintiff would reimburse the defendant and similarly if the actual material used was cheaper then   the   contacted   material,   defendant   would   be   liable   to reimburse   the   difference   of   the   amount   to,   plaintiff.   As   per arrangement   a   statement   of   account   was   prepared   by   the representative   of   the   defendant   and   brought   to   the   plaintiff. Certain   errors   and   omissions   were   noted   to   representative   of the defendant who made some on the spot corrections in his own hand on Detailed examination of that statement. Later plaintiff also  noted some other omission, details of which were  given to representative of defendant. As a matter of fact that defendant owed the plaintiff a sum of 2,89,907/­.

CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 5 of 53

7.  It is further mentioned in the plaint that it was stipulated under clause 32 of above said agreement that defendant would be   liable  to   keep   the   building   in   a   state   of   good   repair   for   a period of one year   from the day plaintiff moved into the said building. It was agreed that   if the building needed repair or reconstruction or re­erection of any nature, the same  would be carried   out   by   the   defendant   at   his   own   cost.   However, defendant  allegedly stopped attending to the plaintiff's request just after three months  of plaintiff moved into new building. On 26.7.2005   plaintiff   was   constrained   to   write   a   letter   to defendant   pointing   out   that     there   had   been   seepage     in different parts of the building and also noted number of flaws and repairs required to be attended to.  Plaintiff also asked the defendant to   pay the amount due towards her on account of unfinished   works in the building.   In response to said letter dated  26.7.2005 of plaintiff defendant had given a belated reply dated   31.8.2005   received   to   plaintiff   on   5.9.2005   mentioning therein   false and   reckless allegations and also taking certain lame   excuses   only   with   the   intention   to     wriggle   out   its CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 6 of 53 obligations under the agreement.  It is further more  defendant admitted in that reply that certain portions of the building were left incomplete.

8.  It is further alleged that  it was very much known to the defendant   that plaintiff was intended to derive rental income by letting out  second floor of the building but due to defendant's acts initially the plaintiff had to suffer a five months delay in getting the possession. Even  thereafter due to continuing work on  defendant's  share   of  building   (  first  floor)  and     the main staircase from court yard yet to be  finished. Thereafter plaintiff had  to face great difficulty  in letting out the second floor of the apartment.   Plaintiff  could let out the second floor only in the month of August 2005 to Miss Amanda Fisher   on a monthly rent of Rs. 25,000/­ per month. It is stated that said rent could have   been   higher   if   defendant   would   have   carried   out construction/repairs   work   as   per   the   agreement.   It   is   alleged that plaintiff had suffered  loss of rent of Rs. 40,000/­ per month for a total period of   nine months i.e. from   November 2004 to July 2005.

CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 7 of 53

9.  Plaintiff   stated   to   have   served   a   legal   notice   dated 27.9.2005. It is stated by plaintiff that  though a certified valuer of  the  building   also  got     report   regarding  estimated    amount spent on building work left incomplete in the building as well as for carrying out repairs and other works. It is to be to the tune of 4,00,000/­. Since as per clause15 of the Property Development Agreement the defendant had agreed to indemnify all losses and expenses on account of any violation on by laws.  Plaintiff had to pay Rs. 1,73,440/­   to the Municipal Corporation on account of regularisation charges for the ground floor and second floor. It is   alleged   that     despite   their   being   delay   of   five   months   in completing the construction. Even when the plaintiff moved into the   building   various   work   like     woodwork,   sanitary   works, electrical   work,   grinding/polishing,   spray   painting   etc.     were carried     out   in   a   haphazard   manner   causing   disturbance, nuisance, physical discomfort and mental agony to plaintiff who is stated to asthma patient.   Plaintiff   therefore   stated to be entitled to claim Rs. 1,00,000/­  on account of said disturbance. CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 8 of 53

10.  It     is   stated   that   as   per   clause   25   (a)   of   the   Property Development Agreement it was agreed that  the elevation of the building   will   not   be   altered   by   the     floor   owners.   However defendant in violation of this clause and inspite of   objections raised by the plaintiff has altered the front elevation of  the first floor of the property and thus has ruined the aesthetics  of the entire building. It is stated that defendant also  installed in the rear   balcony   of   the   entire   first   floor   and   iron   grill   projecting about one and half feet outside the balcony for the purpose of storing   materials/plants   etc.     Since   the   grill   so   installed   as projecting  right above the rear court yard of ground floor, same is creating nuisance on daily basis in several ways for plaintiff. Moreover electric lights in the common staircase were supposed to   be   connected   floor   wise   to   the   respective   floor   meters. However,   defendant   has   connected   electric   lights   in   the staircase   including     the   ones   outside   the   first   floor,   with plaintiff's   electricity   meter   due   to   which   plaintiff   has   been paying entire electricity charges for the staircase. On this count also plaintiff's demand a sum of Rs. 10,000/­ as compensation from defendant.

CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 9 of 53

11.  It   is   further   alleged     that   main   electricity   supply   to defendant's share in the  building i.e.  first floor is not connected through  a circuit breaker, rather connected directly because of which   there is likelihood of causing fire/explosion at the main electricity distribution panel which  located in the passage just outside the main entrance of the ground floor of the property. Thus defendant has created a fire hazard in the building and is particularly dangerous at the ground floor. Due to sub­standard work done by the defendant  there is extensive seepage from the first   floor   to   certain   areas   of   the   ground   floor   including   bath room   and   bed   room   and     rear   court   yard.   Defendant   further installed   water   meter   in   the   name   of   late     husband   of   the plaintiff at first floor as such plaintiff has been paying water charges even pertaining to first floor of the property in question for last three years.

12.  It is stated that since it was provided under clause 35 of Property Development Agreement that in case of any dispute in connection   with   the   said   agreement   parties     shall   attempt CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 10 of 53 within 15 days of receipt of notice  to settle the dispute at first instance by mutual discussion and only after failing to resolve the dispute in such  manner,  parties  shall resort to initiate the legal proceedings. Plaintiff, therefore,  lastly served legal notice dated     20.8.2008   to   defendant   to   call   upon   him   to   settle   the dispute.   But   defendant   allegedly   did   not     respond,   therefore, plaintiff filed the present suit for recovery of Rs. 18,68,347/­ by giving   break   up   of   different   particulars   of   claim   in   tabulated form mentioned in para 29 of the plaint.  Plaintiff  has further prayed for pendente­lite  and future interest @ 18% per annum. The plaintiff has prayed for giving directions to the defendant to restore, remove and to do all such other acts which have been earlier   done   in   contravention   of   Property   Development Agreement dated 16.01.2004

13.  Defendant   filed   the   written   statement   taking   the objections therein that suit has been filed with ulterior motive and   malafide   intention,   the   suit   of   the   plaintiff   is   barred   by limitation as suit is filed after the period of three years. All the accounts   had already stood settled on 28.3.2005 as such   the CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 11 of 53 suit of the plaintiff is  devoid of any cause of action. Moreover, plaintiff  concealed the material facts. It is stated that plaintiff has   filed   the   present   suit   only   to   extort   money   from   the defendant as such the suit is not maintainable. It is stated that plaintiff   is   aware   that   MCD   building   plan   for   property   in question was got sanctioned by her husband on 6.5.2003 long before   the   property   development   agreement   dated   16.1.2004. Plaintiff is aware that her husband had asked for construction of   1350 Sq. feet   per floor and entered into an agreement for construction of the same knowingfully that sanction plan was for 1039 Sq. feet per floor. Plaintiff therefore is estopped from claiming damages on alleged construction etc.

14.  It is pleaded that late Sh. N.C. Mehta   was also aware that   in   the   year   2004­05   that   there   was   no   provision   for regularisation   of   unauthorised     addition     construction.   MCD sanction   plan   has,   therefore   deliberately   not   been   placed   on record. It is pleaded that earlier husband of the plaintiff, after his death her son Arvind Mehta has been supervising every step of   construction   and   had   themselves   selected   material   for CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 12 of 53 construction. But thereafter filed the present false case.   It is stated that suit has not been properly verified and appropriate court fee has not been furnished. Moreover, the suit is bad for non   joinder   of     owner   of   first   floor   of   Property     No.   A­228, Defence Colony, New Delhi.

15.  Suit of the plaintiff has been denied on merits except the fact that  N.C. Mehta was the owner of the property in question. It is also not disputed that husband of the plaintiff  had entered into   Property   Development   Agreement   dated   16.1.2004   with defendant.  It is stated that husband of the plaintiff has already got  construction   plan sanctioned  from  MCD on 6.5.2003 and Property Development Agreement was entered into after about one year. It is stated that plaintiff has concealed the fact that her   husband   had   executed   a   registered   power   of   attorney regarding   first   floor   of   the   property   in   question,   in   favour   of defendant   which   was   duly     registered   on   16.1.2004.   While denying   other   allegations   in   the   plaint   it   is   pleaded   that sanctioned   plan   was   made   part   of   the   agreement   dated 16.1.2004 and there is no clause in that agreement whereby it is CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 13 of 53 provided that in case of any unauthorised construction if raised, same   would   be   at   the   risk   and   cost   of   the   defendant.   Since sanctioned plan   provide for construction for 1039 Sq. feet per floor but plaintiff instructed the defendant to construct 1350 Sq. feet per floor. Such extra construction was at the cost and risk of late Sh. N.C. Mehta and after his death upon plaintiff.

16.  It   is   pleaded   that   there   is   no   delay   in   completion   of construction   work   attributable   to   defendant.   Therefore, defendant is not liable in any manner. While not denying the stipulation   under   the   agreement,   clause   13   whereby     it   was agreed   upon   that   construction   is   to   be   completed   within   9 months.   However, it is stated since late Sh. N.C. Mehta and thereafter his widow, plaintiff and her son did not terminate nor gave   anything   in   writing   or   orally,   rather   shifted   into   the premises after completion of the construction, clearly show that plaintiff was aware   that defendant has not delayed in raising construction. Moreover, even when the accounts were settled on 28.3.2005, no issue was raised  regarding  delay. After  settling the account on 28.3.2005, rather plaintiff had to pay Rs. 25,000/­ CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 14 of 53 to defendant which on the request of the plaintiff  and her son, defendant agreed not to take those Rs. 25,000/­ and  defendant rather paid  Rs. 50,000/­ by cheque No. 297155 drawn on HDFC Bank dated 28.3.2005.

17.  Defendant, therefore specifically denied delay of 5 months or liability of Rs. 2,00,000/­ for such delay.  It is pleaded that it is due to demolition by MCD of excess part of construction as raised   on   the   instruction   of   Mr.   Nanak     Chand   Mehta   and Arvind   Mehta   as   well   as   plaintiff,   delay   had   accrued   in completion   of  work.  After   the  demolition  of   excess   portion  by MCD, on the asking of plaintiff and Arvind Mehta, defendant reconstructed   it.   Moreover,   Mr.   Arvind   Mehta   asked   for elevations   which  were not   in  building   plan  annexed   with  the agreement. Consequently  time for reconstructing was added to 9 months time period and delay penalty was not to be invoked. It is denied that plaintiff had moved into the building in March 2005, it is pleaded that she moved into the same in January 2005.  It is also denied that  defendant had left certain areas of the building unfinished or promised to finish them at later date. CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 15 of 53

18.  Defendant has further denied that any cheaper material of construction was used. It is pleaded that during the life time of Sh. N.C. Mehta, he himself was selecting the material and after   his   death   his   son   Sh.   Arvind   Mehta   was   selecting   the same. Moreover, in January  2005 at the time of handing over of possession, a detailed inspection was done by plaintiff and her son and everything was found in order, as per agreement. Had there been any defect or unfinished work, the same would have been put in writing specially when the accounts were settled on 28.3.2005.

19  While   denying   the   other   allegations   of   the   plaintiff, though it is not disputed that clause 32 of the agreement was valid for one year./  It is stated that defendant continue to look after   the   building   at   his   own   cost   despite   accounts   already settled finally on 28.3.2005. Letter of plaintiff dated 26.7.2005 was  duly  replied   by   defendant  on  31.8.2005     whereby   all  the allegations were denied. 

20.   It   is   pleaded     that   defendant   has   already   sold   the  first CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 16 of 53 floor of the property, which came to his share, to one Mrs. Ritu Prakash W/o Vikram  Prakash. Whatever work was to be done in that floor, same was of no concern to plaintiff  as plaintiff is not owner of entire building but owner only to the extent, which fell to her  share  under  the agreement  dated  16.1.2004.   It  is denied that main staircase or front court yard of the building was not properly finished or plaintiff has to face any difficulty in letting out the second floor of the property.   It is stated that defendant is not liable for any delay in letting out that portion or   loss   of   any   rental   income.   The   alleged     report   of   certified valuer of the building is denied.  All the others allegations have been denied.

21  Plaintiff   filed   the   replication   to   the   WS   of   defendant whereby   all   his   pleadings   were   controverted.   Case   of   the plaintiff was reiterated.  

22  On   the   basis   of   pleadings   as   come   on   record,   following issues were framed on 24.4.2009. 

ISSUES CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 17 of 53

1.    Whether the plaintiff is entitled to the suit amount  of Rs. 18,68,347/­ ? OPP

2.  Whether the plaintiff is entitled to the interest, if so, at what rate and for which period?OPP 3 Whether   the   suit   as   filed   is   barred   by   limitation?


                   OPD

         4         Whether the suit has not been properly verified, if 

                   so, its effect? OPD 

         5         Whether the suit suffers from the defect of 

deficiency of court fee, if so, its effect? OPD 6  Whether the suit is bad for non joinder of the  necessary parties? OPD 7  Relief

23. On   behalf   of   plaintiff   affectively   11   witnesses   were examined,  PW­1  is   plaintiff   Savita   Mehta,  PW­2  is   Ravi Trihant   from   O/o   Sub­Registrar,   another   witness   has   been examined   as  PW­2  namely   Bharat   Arora   S/o   Bhagat   Arora, PW­3  is   A.   K.   Choppra,   Asstt.   Engineer,   L   &   DO,     another witness has been examined as PW­3 namely Sh. C. K. Bhagat S/o  M.  N.  Bhagat,    PW­4  is   S.  K.  Singh,  Architect,  PW­5  is CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 18 of 53 Krishan Kaushik, Record Keeper, Building Department, MCD, PW­6  is   Sh.   Girish   Kumar,   JE,   NDMC,  PW­7  is   Arvind Mehta( Son of plaintiff),  PW­8  is Mrs. Renu Prakash W/o Sh. Vikram   Prakash,  PW­9  is   Sunil   Verma,   LDC,   Building Department, MCD.  On behalf of defendant, defendant Col. M. L. Chandan has appeared in the witness box as DW­1.

24. I   have   heard   the   counsels   for   the   parties   and   gone through the record including the written submissions filed on behalf   of   defendant.       My   findings   of   each   of   the   issues   are follows:­ Issue no. 3: 

(Whether the suit as filed is barred by limitation) 

25. This   issue   is   being   taken   up   first   as   it   involves   the maintainability   of   the   suit   on   the   question   of   limitation. Defendant   has   taken   the   objection   that   suit   is   barred   by limitation as it has been filed after expiry of 3 years from the date of settlement of account on 28.03.2005.   First of all, it be noted that plaintiff is seeking relief of damages on account of CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 19 of 53 alleged   breaches   of   property   development   agreement   dated 16.01.2004.     Present   suit   was   filed   on   05.09.2008.     On meaningful reading of the plaint, it would be clear that while plaintiff   alleging   that   different   clauses   of   agreement   dated 16.01.2004 were violated. She has alleged that at first instance clause   13   of   agreement   dated   16.1.2014   was   breached     as construction   of building was not completed within   period of nine   months   from   date   of   handing   over   of   possession   on 16.1.2004. Plaintiff, therefore,   has claimed   Rs. Two lacs for delay   of   5   months   in   completion   of   construction   of   building. According to plaintiff, she shifted in building  in March 2005. It is also case of plaintiff that it was agreed upon between parties that  if there would be delay  in construction beyond 12 th month ( 3 months after  dead line of 9 months), then in terms of clause 27   of   the   agreement,   she   was   at   liberty   to   terminate   the agreement.

26.  So   from   evidence     of   PW­1   &   PW­7,   as   well   as   agreed terms of agreement Ex. PW1/1, agreement even as per plaintiff breached for the first time in January 2005, when construction CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 20 of 53 of     building   was   not   completed,   as   per   agreement,   despite passage     of   3   additional   months   from   end   of   dead   line   of   9 months   for   completion   of   work.   Moreover,     if   according   to plaintiff   she moved into new building in March 2005. If she claims damages for delay   in completion of construction work, cause of action  certainly  accrued by January or March 2005.

27.  Plaintiff has further alleged that even after moving into building, she found that construction of building was not raised as per specifications in Schedule­B attached to the agreement Ex. PW1/1. It is further allegation of plaintiff that as per clause 32 of agreement, defendant was bound to keep the building in state of good repair, for period of one year of plaintiff   moving into building. So defendant was required to make repair work etc. in building,   at his cost, for one year after shifting   into building.   Plaintiff   has   alleged   that   she   wrote     letter     on 26.07.2005 to defendant pointing out about seepage in different parts of building and other floors, required to be repaired. So, if according   to   plaintiff   there   were   other   alleged   breaches   of agreement or building   was allegedly not constructed   as per CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 21 of 53 specifications   or   plan   annexed   with   agreement,   so   cause   of action further arose, even after March 2005, same thus accrued lately  on 26.7.2005 when plaintiff stated to have sent letter to defendant.

28.  It is, however, further case of plaintiff that she received belated reply of defendant by  reply dated 31.8.2005 received to plaintiff   on   5.9.2005   wherein,   according   to   plaintiff   false allegations     of   lame   excuses     were   taken   by   defendant.  Now reading  the  evidence  for   the purpose  of issue  of  limitation,   I find that in case of alleged breach   of terms of contact, if in series   of   succeeding   events,   enumerated   to   allege   different breaches of terms of agreement,   cause of action for claiming damages  or   compensation    for  such  breach of  contract  would accrue  when the first violation of terms of agreement accrued. Even     if   cause   of   action   for   claiming   damages   etc.   have allegedly further accrued, but to my mind, limitation period of 3 years have to be reckoned  from date of first accrued  of cause of action.   It is not   continuous   cause of action rather different cause   of   action   accrued   because   agreement   Ex.   PW1/1   was CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 22 of 53 alleged to have been   violated   in succeeding series of events and   therefore   damages   under   different   heads   have   been claimed. But fact remains, once the limitation period started, based on cause of action of one of the alleged breach of terms of agreement then limitation period will continue, from that date, even   if   there   are   subsequent   alleged   breaches   of   terms   of agreement, noted by plaintiff.

29.  Limitation starts from accrued of first cause of action and therefore   cannot   taken   or   presumed   to   have   started   from accrued of last cause of action, in case of succeeding breaches of agreement.   If   there   is   maximum   period   of   three   year   of limitation prescribed in law, such period would start from date of accrued of first cause of action to file suit for damages and not   from   accrued   of   last   date   of   cause   of   action   in   case succeeding   sequence   of   events,   different   terms   of   agreement were   allegedly     breached.   In   present   case,   even   according   to plaintiff   she   wrote   letter   on   26.7.2005   to   defendant, complaining   therein   about   seepage   and   repair   work   etc. required   to   be   done.   Then   limitation   would     at   the   most   for CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 23 of 53 filing suit for damages start from date of letter of plaintiff and not from the date of reply. In this case though reply was given by   defendant   though   as   per   plaintiff   it   was   belated   reply.   If defendant   would not   have given reply, this would not mean that limitation period,  could be assumed to have started  as per convenience   of   plaintiff.     I   feel   law   of   limitation   cannot   be twisted according to convenience of either party to suit.

30.  Another   important   aspect   required   to   be   noted   here   is that plaintiff/PW­1 has admitted in her cross examination that their   accounts   were   settled   on   28.3.2005   and   at   that   time defendant gave her  Rs. 50,000/­ only. If accounts were settled on   28.3.2005   and   according   to   plaintiff,     defendant   has   not given, complete amount, then also   cause of action accrued to file   suit   for   damages   on   basis   of   alleged   breach   of   terms   of agreement.

31. Article  55 of Limitation Act provides for filing of the suit for   compensation   for   the   breach   of   any   contract,   express   or implied. According to this Article the period of limitation is 3 CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 24 of 53 years.   This   Article   further   says   that   when   the   contract   is broken or where there are successive breaches, then the breach in   respect   of   which   suit   is   instituted   occurs.   Under   these circumstances, the above Article applies to the present case and as per the same, the period of limitation for compensation for breach of contract is 3 years from the date when the contract is broken or where there are successive breaches. Thus starting point of limitation under Article 55 of the Limitation Act, 1963 is   from   the   date   of   breach   even   where   the   loss   cannot   be quantified till some time after the breach. (Delta Foundations &   Othr.   Vs   Kerala   State   Construction   AIR   2003   Ker   201) Therefore in facts of present case I find that suit of plaintiff is not within limitation, issue therefore decided against plaintiff and in favour of defendant.  

Issue no. 4:

(whether the suit has not been properly verified, if so its effect?)

32. This   issue   was   also   framed   on   the   objection   taken   on behalf of the defendant to the effect that plaint has not been properly   verified   as   required   under   Order   6   Rule   15   CPC. Perusal of the plaint would show that in the verification clause CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 25 of 53 attached   to   plaint,   it   is   simply   mention   that   contents   of   the plaint   are   true   and   correct   and   nothing   has   been   concealed. The requirement of the law, in this regard however is different. As per order 6 Rule 15 of CPC, the plaintiff is required to verity by giving reference of different paras of pleadings, which are based on  knowledge of plaintiff and to be correct and true and other   pars   which   are   based   on   the   information   received   and believed to be correct.   However apparently the plaint has not been verified as per Rule 15  of Order 6 CPC.  Consequently, I find   the   plaint   is   not   with   proper   verification   clause, consequently, this issue  stand decided against the plaintiff and in favour of the defendant.   

Issue no. 6:

(Whether the suit is bad for non joinder of necessary parties?)

33. Defendant has taken the objection in the WS that suit is bad   for   non   joinder   of  owner   of   the   first   floor   of   property   in question. Whereas if we read the plaint as a whole, it would be clear   that   the   plaintiff   is   seeking   the   relief   of   damages   etc. regarding different breaches of clauses of property development CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 26 of 53 agreement dated 16.01.2004.  Agreement was between husband of the plaintiff and defendant, in such situation when no relief has   been   sought   qua   occupier/owner   of   the   first   floor   of   the property in question, then such owner is neither necessary nor proper party to the present suit.  Issue therefore stand decided against the defendant and in favour of plaintiff.   Issue no. 5:

(Whether   the   suit   suffers   from   defect   of   deficiency   of court fee, if so its effect?)

34. Plaintiff   has   filed   the   present   suit   seeking   recovery   of total   amount   of   Rs.   18,68,347/­   along   with   the   interest   on account of damages for alleged violation of different clauses of property   development   agreement,   as   per   the   break   up   of different claims given in tabulated form in para no. 29 of the plaint.     Plaintiff has furnished total court fee of Rs. 20,600/­. Which   as   per   the   table   attached   with   the   Court   fee   Act   is correct.     Consequently,   the   issue   stand   decided   against   the defendant and in favour of the plaintiff. 

Issue no. 1:

CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 27 of 53

(Whether   the   plaintiff   is   entitled   to   the   suit   amount   of   Rs. 18,68,347/­? )

35. Onus   to   prove   this   issue   is   on   plaintiff.     Let   us   now examine   the   evidence   lead   on   behalf   of   plaintiff   to   ascertain whether the plaintiff has been able to establish her case.   The fact that plaintiff's husband Late Sh. Nanak Chand Mehta is owner   of   Plot   No.   A228,   Defence   Colony,   Measuring   217   Sq. Yds., is not disputed.   This fact is also not disputed that Late Sh. Nanak  Chand  Mehta after  getting  the property  into free hold got conveyance deed executed in his favour on 18.09.2000. It is also not disputed that during his lifetime, husband of the plaintiff   entered   into   property   development   agreement   with defendant on 16.01.2004.     It is also not disputed that under said agreement entire structure of property in question was to be demolished and thereafter new building comprise of Ground, First   and   Second   Floor   along   with   servant   quarters   and bathroom/toilet on the terrace were agreed to be constructed as per the agreed plan and specification.   It is also not disputed that under the said agreement, parties agreed that ownership of   Ground   and   Second   Floor   along   with   terrace   with   70%   of CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 28 of 53 land   underneath   the   structure   would   be   of   husband   of   the plaintiff and First Floor of the property of 30 % of indivisible share   in   the   land   would   be   with   defendant.       It   is   also   not disputed that after the death of Late Sh. N. C. Mehta, plaintiff succeeded   his   estate   by   virtue   of   registered   will   dated 26.11.2001 as well as relinquishment deed dated 18.09.2007 in her favour.

36. Let us now considered those facts which are disputed.  In the   entire   plaint,   plaintiff   has   alleged   different   violation   of property   development   agreement.   Therefore,   plaintiff   has claimed  damages  under   different   heads.     The  first   of  alleged violation of agreement dated 16.01.2004 is that as per clause 13 of agreement dated 16.01.2004, the process of demolition and construction   of   new   building   as   per   agreement   was   to   be completed   within   period   of   9   months   from   the   date   of agreement.  Since, it was stipulated that the time being essence of   an   agreement,   in   case   of   delay   in   completion   of   building, defendant   would   be   liable   to   pay   Rs.   25,000/­   for   10  and   11 month (Starting from 9 months stipulated from construction) CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 29 of 53 and   Rs.   50,000/­   for   12   months   and   if   there   being   delay   in completion of construction beyond 12th  months, owner would be entitled   to   terminate   the   agreement   as   per   clause   27   of agreement.

37. Defendant   though   has   not   disputed   clause   no.13   of agreement,   however   has   taken   the   plea   that   the   delay   in completion is not attributable to him, it is stated that Late N. C.   Mehta   had   already   obtained   the   sanction   from   MCD   on 23.05.2003 and agreement was executed on 16.01.2004.   It is also the case of the defendant the additional constructions was got made at the instructions of Late N. C. Mehta during his lifetime   and   after   him,   plaintiff   and   her   son.     Moreover, plaintiff   did   not   terminate   the   agreement   and   rather   shifted into the premises which clearly show that delay was not due to fault   on   defendant.   Defendant   has   also   pleaded   that   even accounts were duly settled on 28.03.2005 and that time no issue was raised regarding delay in completion of construction work.

38.  Let us   now examine evidence as come on record. PW­1 CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 30 of 53 has   testified   about   this   stipulation   in   para   no.   10   of   her affidavit, similarly PW­7 has also testified the similar facts in his affidavit ( para no. 10).  In cross examination PW­1/plaintiff admits   that   her   husband   had   got   the   sanctioned   plan   for construction   from   MCD,   prior   to   entering   into   property development   agreement.     PW­1   further   admits   that   accounts were   settled   with   defendant   on   28.03.2005.     Though   PW­1 stated   that   at   that   time   the   defendant   had   given   her   Rs. 50,000/­ only.   It is also not disputed that after completion of construction work, plaintiff moved into the building, according to   plaintiff,   she   moved   into   the   building   in   March,   2005 whereas according to defendant, plaintiff took the possession of new   building   in   January,   2005.     It   has   also   come   in     cross examination of PW­1 that the constructions work were started during the lifetime of her husband.  PW­7 has also admitted in his cross examination that on 15.05.2004 when his father has died,   the   stage   of   the   constructions   was   approximately completed   structure.   He   further   admitted   in   his   cross examination that proposed building plan for constructions also contained   additional   construction   from   what   contained   in CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 31 of 53 sanctioned   plan.     PW­7   was   also   admitted   that   additional construction   was   got   regularized   subsequently   in   year   2008. This witness further admitted that the construction was done to   the   extent   of   99.9%   in   accordance   with   proposed   plans annexed with property development agreement Ex. PW1/1.

39. Considering   the   such   evidence   as   come   on   the   record along   with   the   agreement   dated   16.01.2004   which   is   also annexed   with   the   specification,   sanction   plan   and   sanction building plan, it is clear that construction actually carried out at the site was not strictly as per sanctioned plan. There was additional constructions carried out at the site. What are the consequences for carrying out such additional constructions is a separate   aspect.   But   facts   remains   there   was   additional constructions   raised   at   the   site,   same   was   never   objected   to either   by   husband   of   the   plaintiff   during   his   lifetime,   or   by plaintiff and her son at any point of time.   It is also admitted fact   that   after   completion   of   construction   work   at   the   site, plaintiff   moved   into   the   new   building   without   raising   any objection regarding delay in completion of constructions work. CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 32 of 53 Whereas   it   was   stipulated   between   the   parties   under   the agreement Ex. PW1/1 clause 35, to the effect that in case of any dispute in connection with or arising out of the agreement or on account of any  breach of agreement, parties shall attempt  to resolve, within period of 15 days, upon receipt of notice given to the   other   side   regarding   existence   of   any   such   dispute,   by mutual discussion.  Admittedly, no written notice was given  by plaintiff   as   per   above   mentioned   clause   35   to   defendant regarding   delay   in  completion  of  constructions  work.  In  such situation, once all the parties were aware that construction was not strictly done in accordance with sanctioned building plan, it is   also   to   be   ascertained   if   any   damages   have   been   actually caused to plaintiff or not.

 40 Mere   filing   of   suit   for   damages   perse   does   not   make plaintiff   entitled   for   the   same.   Plaintiff   needs   to   establish firstly a breach of contract and secondly consequent  damages. Consequences   for   breach   of   the   contract   are   provided   in Chapter VI of the Contract Act which contains three sections, namely,   section   73  to   section   75.   As   per  Section   73  of   the CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 33 of 53 Contract Act, the party who suffers by the breach of contract is entitled to receive from the defaulting party, compensation for any   loss   or   damage   caused   to   him   by   such   breach,   which naturally arose in usual course of things from such breach, or which the two parties knew when they make the contract to be likely the result of the breach of contract. This provision makes it   clear   that   such   compensation   is   not   to   be   given   for   any remote or indirect loss or damage sustained by reason of the breach.

41   The underlying principle enshrined in this section is that a   mere   breach   of   contract   by   a   defaulting   party   would   not entitle other side to claim damages unless said party has in fact suffered   damages   because   of   such   breach.   Loss   or   damage which is actually suffered as a result of breach has to be proved and the plaintiff is to be compensated to the extent of actual loss or damage suffered. When there is a breach of contract, the party who commits the breach does not at the instant incur any pecuniary   obligation,   nor   does   the   party   complaining   of   the breach becomes entitled to a debt due from the other party. The only   right   which   the   party   aggrieved   by   the   breach   of   the CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 34 of 53 contract has is the right to sue for damages. 

42  No   pecuniary   liability   thus   arises   till   the   Court   has determined that the party complaining of the breach is entitled to  damages.  Therefore  Court  of  Law in  the first   place has to decide that the defendant is liable and then it should proceed to assess what the liability is. But, till that determination, there is no liability at all upon the defendant. Courts will give damages for   breach   of   contract   only   by   way   of   compensation   for   loss suffered   and   not   by   way   of   punishment.   The   rule   thus applicable   for   determining   the   amount   of   damages   for   the breach   of   contract   to   perform   a   specified   work   is   that   the damages   are   to   be   assessed   at   the   pecuniary   amount   of difference between the state of the plaintiff upon the breach of the contract and what it would have been if the contract had been performed and not the sum which it would cost to perform the   contract,   though   in   particular   cases   the   result   of   either mode of calculation may be the same. 

43  The   measure   of   compensation   depends   upon   the CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 35 of 53 circumstances   of   the   case.   The   complained   loss   or   claimed damage   must   be   fairly   attributed   to   the   breach   as   a   natural result or consequence of the same. The loss must be a real loss or actual damage and not merely a probable or a possible one. When it is not possible to calculate accurately or in a reasonable manner,   the   actual   amount   of   loss   incurred   or   when   the plaintiff has not been able to prove the actual loss suffered, he will be, all the same, entitled to recover nominal damages for breach   of   contract.   Where   nominal   damages   only   are   to   be awarded,   the   extent   of   the   same   should   be   estimated   with reference to the facts and circumstances involved. The general principle to be borne in mind is that the injured party may be put in the same position as that he would have been if he had not sustained the wrong. 

44  In   Murlidhar   Chiranjilal   v.   Harishchandra   Dwarkadas and Anr., AIR 1962 SC 366, the Supreme Court highlighted two principles  which   follow  from   the  reading   of  Section   73  of   the Contract Act. The first principle on which damages in cases of breach of contract are calculated is that, as far as possible, he CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 36 of 53 who   has   proved   a   breach   of   a   bargain   to   supply   what   he contracted to get is to be placed, as far as money can do it, in as good a situation as if the contract had been performed; but this principle is qualified by a second, which imposes on a plaintiff the   duty   of   taking   all   reasonable   steps   to   mitigate   the   loss consequent   on   the  breach  and   debars   him   from   claiming  any part of the damages which is due to his neglect to take such steps. 

45  Thus, while on one hand, damages as a result of breach are to be proved to claim the same from the person who has broken the contract and actual loss suffered can be claimed, on the other hand,  Section 74  of the Act entitles a party to claim reasonable   compensation   from   the   party   who   has   broken   the contract   which   compensation   can   be   pre­determined compensation   stipulated   at   the   time   of   entering   into   the contract   itself.   Thus,   this  section   provides  for   pre­estimate  of the damage or loss which a party is likely to suffer if the other party breaks the contract entered into between the two of them. If   the   sum   named   in   the   contract   is   found   to   be   reasonable CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 37 of 53 compensation, the party is entitled to receive that sum from the party who has broken the contract. Interpreting this provision, Superior Courts have held that such liquidated damages must be   the   result   of   a   "genuine   pre­estimate   of   damages".   This section, therefore, merely dispenses with proof of "actual loss or damage".   However,   it   does   not   justify   the   award   of compensation when in consequence of breach, no legal injury at all  has   resulted,   because   compensation   for   breach   of   contract can be awarded to make good loss or damage which naturally arose in the usual course of things, or which the parties knew when   they   made   the   contract,  to   be   likely   to  result   from   the breach. 

46  The   Supreme   Court   in   the   case   of  Union   of   India   v. Raman Iron Foundry, AIR 1974 SC 1265, expounded this very principle in the following words: 

"9......The   claim   is   admittedly   one   for   damages for   breach   of   the   contract   between   the   parties. Now,   it   is   true   that   the   damages   which   are claimed are liquidated damages under Clause 14, but so far as the law in India is concerned, there is  no  qualitative difference in the nature  of the CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 38 of 53 claim whether it be for liquidated damages or for unliquidated   damages.  Section   74  of   the   Indian Contract Act eliminates the somewhat elaborate refinements made under the English common law in distinguishing between stipulations providing for   payment   of   liquidated   damages   and stipulations in the nature of penalty. Under the common law a genuine pre­estimate of damages by mutual agreement is regarded as a stipulation naming liquidated damages and binding between the   parties   :   a   stipulation   in   a   contract   in terrorem  is   a   penalty   and   the   Court   refuses   to enforce   it,   awarding   to   aggrieved   party   only reasonable compensation. The Indian Legislature has   sought   to   cut   across   the   web   of   rules   and presumptions under the English common law, by enacting   a   uniform   principle   applicable   to   all stipulations naming amounts to be paid in case of breach, and stipulations by way of penalty, and according   to   this   principle,   even   if   there   is   a stipulation by way of liquidated damages, a party complaining of breach of contract can recover only reasonable compensation for the injury sustained by him, the stipulated amount being merely the outside limit. It, therefore makes no difference in the present case that the claim of the appellant is for   liquidated   damages.   It   stands   on   the   same CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 39 of 53 footing as a claim for unliquidated damages. Now the   law   is   well   settled   that   a   claim   for unliquidated damages does not give rise to a debt until   the   liability   is   adjudicated   and   damages assessed by a decree or order of a Court or other adjudicatory authority. When there is a breach of contract, the party who commits the breach does not   eo   instanti   incur   any   pecuniary   obligation, nor   does   the   party   complaining   of   the   breach becomes   entitled   to   a   debt   due   From   the   other party. The only right which the party aggrieved by the breach of the contract has is the right to sue for damages. That is not an actionable claim and   this   position   is   made   amply   clear   by   the amendment   in  Section   6(e)  of   the   Transfer   of Property Act, which provides that a mere right to sue for damages cannot be transferred. 
47  Thus one can say that a person who commits a breach of the contract does not by itself incurs any pecuniary liability, nor would it be true to say that the other party to the contract who complains of the breach has become entitled to any amount due to   him   from   the  other   party.   Only   right   which   he   has   is  the right   to   go   to   a   Court   of   law   and   recover   damages.   Now, damages are the compensation which a Court of law gives to a CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 40 of 53 party for the injury which he has sustained. But, and this is most   important   to   note,   he   does   not   get   damages   or compensation by reason of any existing obligation on the part of the   person   who   has   committed   the   breach.   He   gets compensation as a result of the fiat of the Court. Therefore, no pecuniary liability arises till the Court has determined that the party   complaining   of   the   breach   is   entitled   to   damages.
Therefore, when damages are assessed, it would not be true to say   that  what  the  Court  is  doing  is  ascertaining   a  pecuniary liability which already existed. The Court in the first place must decide that the defendant is liable and then it proceeds to assess what   that   liability   is.  But   till   that   determination   there  is  no liability at all upon the defendant. 
48  The Supreme Court in the matter of ONGC Ltd. v. Saw Pipes   Ltd.,   AIR   2003   SC   2629,   has   discussed   provisions   of Section 73 and 74 of the Indian Contract Act and held as under: 
"Under  Section   73,   when   a   contract   has   been broken,   the   party   who   suffers   by   such   breach   is entitled to receive compensation for any loss caused to him which the parties knew when they made the contract to be likely to result from the breach of it.
CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 41 of 53
This  Section   is  to  be  read   with  Section   74,   which deals with penalty stipulated in the contract, inter alia   [relevant   for   the   present   case]   provides   that when a contract has been broken, if a sum is named in the contract as the amount to be paid in case of such   breach,   the   party   complaining   of   breach   is entitled,   whether   or   not   actual   loss   is   proved   to have been caused, thereby to receive from the party who   has   broken   the   contract   reasonable compensation not exceeding the amount so named. Section   74  emphasizes   that   in   case   of   breach   of contract,   the   party   complaining   of   the   breach   is entitled   to   receive   reasonable   compensation whether or not actual loss is proved to have been caused by such breach. therefore, the emphasis is on reasonable   compensation.   If   the   compensation named   in   the   contract   is   by   way   of   penalty, consideration   would   be   different   and   the   party   is only   entitled   to   reasonable   compensation   for   the loss suffered. But if the compensation named in the contract for such breach is genuine pre­estimate of loss   which   the   parties   knew   when   they   made   the contract to be likely to result from the breach of it, there   is   no   question   of   proving   such   loss   or   such party   is   not   required   to   lead   evidence   to   prove actual loss suffered by him. Burden is on the other party   to   lead   evidence   for   proving   that   no   loss   is CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 42 of 53 likely to occur by such breach..." 

49  What   follows   from   the   above   is   that   even   if   there   is   a clause of liquidated damages, in a given case, it is for the Court to determine as to whether it represents genuine pre­estimate of damages. In that eventuality, this provision only dispenses with the proof of "actual loss or damage". However, the person claiming the liquidated damages is still to prove that the legal injury resulted because of breach and he suffered some loss. In the process, he may also be called upon to show that he took all reasonable   steps   to   mitigate   the   loss.   It   is   only   after   proper enquiry into these aspects that the Court in a given case would rule   as   to   whether   liquidated   damages   as   prescribed   in   the contract are to be awarded or not. Even if there is a stipulation by way of liquidated damages, a party complaining of breach of contract   can   recover   only   reasonable   compensation   for   the injury sustained by him and what is stipulated in the contract is the outer limit beyond which he cannot claim. Unless this kind of determination is done by the Court, it does not result into "debt". (Tower Vision India Pvt. Ltd. vs Procall Private Limited MANU/DE/4958/2012).

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50.  Thus   from the above discussion, it is clear that plaintiff has   twin   responsibility   to   establish   breach   of   agreement   and also to establish consequent damages. Once it has already come on record and rather admitted by plaintiff PW­1 as well as PW­ 7   that   construction     of   the   building   was   not   strictly   as   per sanction plan approved by the MCD, still plaintiff accepted the same   and   she   shifted   into   new   building   without     any opposition/complaint.  In such circumstances defendants cannot be attributed to   any delay in completion   of construction and therefore,   defendant   cannot   be     made   liable   for   damages   in terms of clause 13 of the agreement dated 16.1.2004. 51  If   we   proceed   ahead   to   examine   other   claims   of   the plaintiff, PW­1 Savita Mehta has  testified in para 11 onwards of her affidavit  of examination in chief that defendant failed to construct   the   building   as   per   specification   attached   with   the agreement. PW­1 says that in March 2005 when she moved into the building,  she found that defendant had left certain areas of building unfinished giving promise to finish   the same at later CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 44 of 53 date.   PW­1   further  testified that  type of material   used  for construction     of   building   was   not   as   per   the   specification Schedule B annexed with the agreement. PW­1 says that it was understood amongst the parties that if the actual material used, would   be   costlier     than   the   contacted   material,   in   that   case plaintiff to reimburse the defendant and in case actual material used is cheaper than the contacted   material, in that situation defendant   would   be   liable   to   reimburse   the   amount     of difference between the cost of material actually used than ought to   have   been   used.     PW­1   further   says   that   on   detailed examination     pointed   out   the   different   omission   in   detailed statement     given   to   the   representative   of   the   defendant regarding  which   defendant  odd   a  sum  of   Rs.  28,907/­  on   this account. PW­1 says that defendant is liable to reimburse that amount  to her.  Similar is the evidence of PW­7 Arvind Arvind Mehta on this aspect. 

52.  Now if we examined this aspect/claim of the plaintiff, PW­ 1 has admitted  in cross examination that her husband during his life time never raised any objection regarding material etc. CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 45 of 53 used in the construction.  PW­1 further admits that she had also visited   twice/thrice   in   the   property   in   question   before   taking possession. Witness also says that  she had chosen material like tiles, lights, flooring and kitchen material etc. 53 Similarly, PW­7, have also stated in his cross­examination that he selected tiles for the floors , walls and the lights as well as   ceiling   fans.   Witness   has   further   stated   that   he   had   got wooden   flooring   done   in   one   room   as   well   as   glass   work   for window, of his choice. PW­7 has further stated that construction was done to the extent of 99.9% in accordance with proposed plan   annexed   with   agreement   Ex.PW1/1.   Thus,   from   such testimony of PW1 and PW­7, it is clear that there is no specific evidence   as   to  which   are  those   areas   of   the   building   ,  where construction was left unfinished. Moreover, no specific evidence has come on the record to establish that any inferior quality of material   was   used   as   against   any   other   material   already selected   under   the   agreement.   If   it   is   coming   in   the   cross­ examination of PW1 and PW7, that to a large extent they had selected material of their own choice, in such situation making a CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 46 of 53 bald   allegation   of   inferior   quality   of   material   or   unfinished construction   work,   would   not   be   sufficient   for   claiming damages. 

54 In this context, it is fruitful to refer to the Judgment of Bhopal   High   Court   in   "Ghasi   Ram   vs.   Municipal   Board, Bhopal" AIR 1956 Bhopal 65,  as relied upon by the counsel for   the   defendant,   wherein   it   has   held   that   two   important principles governing the grant of damages are that the claimant should not himself be guilty of any negligence and should have taken   all   the   reasonable   steps   to   minimize   the   laws   to   be suffered  and   that   the  amount  of   damages   to  be   awarded   can never exceed the loss actually suffered by him or likely to suffer, provided that his acts are lawful and not contrary to rules or by laws duly enacted.

55  In the present case also , I find that though plaintiff has on one hand alleged that inferior quality of material was used or   that   some   of   the   portion   of   the   building   left   unfinished   , regarding   which   defendant   allegedly   gave   assurance   for CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 47 of 53 completing the construction later. If that was the situation even at   the   stage   when   plaintiff   moved   into   the   building,   plaintiff could have raised the issue of unfinished construction as well as inferior quality of construction at that stage only, but at that stage, without raising any protest , plaintiff shifted into the new building  and  at  very later stage certain allegations are being levelled without being substantiated. Here it is also important to   note   that   plaintiff   in   her   cross­examination   has   further admitted   that   accounts   under   the   agreement   Ex.PW1/1   were duly settled on 28.03.05. witness has further stated that by that time,   defendant   had   given   to   her   Rs.50,000/­.   Even   by   that stage, plaintiff has not raised any issue/ objection regarding any inferior quality of construction or unfinished construction. 

56.  As I have noted above, that damages are to be awarded not to enrich the aggrieved. Rather, damages are awarded  to ensure   that   person   aggrieved   is   to   be   placed   on   the   same condition   in   which   he   was,   but   for   breach   of   agreement committed   by   the   other   side.   Therefore,   sin   qua   none   for establishing case for claiming damages is to establish loss and CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 48 of 53 injury   consequent   upon   breach   of   agreement.     Mere   alleging breach  without   proof  of  loss  /  damages  would   not  establish   a case for awarding monetary damages.  

57 It has further come in the evidence of PW­1, that as per clause 32 of agreement defendant was liable to keep building in state   of   good   repair   for   period   of   one   year   from   the   day   she moved into the said building. PW­1 says that building needed repair or reconstruction, however, defendant allegedly stopped attending to her request for such repair etc. just three months after her starting living in the new building.   PW­1 says that she  wrote a  letter   dt  26.07.05  to defendant   pointing  out   that there   had   been   seepage   in   various   parts   of   the   building   and number of flaws and repairs, needed to be attended to. PW­1 says that instead of completing the repair work , defendant sent a   belated   reply   on   31.08.05   making   calls   and   reckless allegations. Again, such aspect  of plaintiff's case, if examined carefully   ,   it   would   be   clear   that   such   allegations   are   more vague   and   without   any   specific   evidence.   PW­1   in   her   cross­ examination   has   admitted   that   she   had   not   incurred   any CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 49 of 53 expenditure   for   repair   of   ground   floor   from   March   2005   to December 2009. If according to her she has not spent even a single penny towards the repair in the building, it is hard to understand as to how there is any evidence of alleged seepage or repair work required to be attended to and was not so done by defendant.   Thus, I find that even on this aspect , plaintiff has failed to establish any actual damage or non compliance of any terms of agreement by defendant. 

58 Another   claim   of   damages   of   the   plaintiff   is   that   since defendant   had  refused  to  take  up   repair   work and  defendant continued     his   construction     work   at   the   first   floor   of   the building   and   main   staircase   as   well   as   front   courtyard, therefore, plaintiff could not  derive rental income as she was not able to let out the second floor of the building.  PW­1 further says that because of initial delay of five months in completion of construction and thereafter additional four months were lost in completing the repair work, till the month of August 2005 when second   floor   was   let   out   to   a   tenant.   As   such   there   was additional loss of four months.  Thus, plaintiff says that she was CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 50 of 53 deprived from her possible rental income from Nov. 2004 to July 2005.   On   account   of   such   loss   also,   plaintiff   has   claimed damages.   On this aspect, first of all, it is required to be noted that   plaintiff   admittedly   shifted   into   new   building   in   March 2005. Plaintiff admittedly settled the accounts with defendant on   28.03.2005.   By   that   stage,   nowhere   it   was   pointed   out   on behalf of plaintiff that she is facing difficulty in letting out the second   floor   of   the   property   on   account   of   unfinished   work allegedly left by defendant.  In cross­examination of PW­7 it has already   come   that   construction   work   was   complete   and   no repair   work   etc.   was   gong   on   the   first   floor   of   the   property. Thus,   I   find   that   even   this   aspect   of   the   plaintiff's   case remained unsubstantiated. 

59 In support of her claim plaintiff has also examined, PW­4 Sh. S.K.Singh who is Architect by profession and who has given his report Ex.PW1/6. This report is with regard to repair / faulty or   unfinished   work   in   the   premises   in   question   and   also mention   the   estimate   of   expenditure   for   such   repair   work. Report   of   this   witness   ,   however,   is   of   no   relevance   firstly CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 51 of 53 because   this   witness   in   cross­examination   admits   that   he visited the property in question for the first time in July/August 2008. This witness further admits that he was not aware as to since   when   plaintiff   has   been   residing   in   that   building   prior thereto.   This witness further admits that he had not carried out  any   construction  in the property.  He also  admits  that  he was not given any bills/ documents by plaintiff for the purpose of   preparing   report   Ex.PW1/6.   He   also   admits   expenditure   / estimate   prepared   by   him   in   his   report   are   based   on   rates prevalent   in   year   2008.   Thus,   when   plaintiff   had   admittedly shifted into the building in March 2005 and has been staying in it for about three years , it is hard to understand as to how this architect   could   have   been   given   any   estimate   of   damages   or repair work regarding alleged damages/ unfinished work in the building. Thus, I find that such witness has also not establish the case of the plaintiff. 

60 Thus,   for   the  reasons   stated   above,   I   find   that   plaintiff has failed to establish any case for claim of damages under any head. Issue accordingly stands decided against the plaintiff and CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 52 of 53 in favour of the defendant. 

ISSUE NO. 2   (Whether the plaintiff is entitled to the interest, if so, at what rate and for which period?) 61 In   view   of   my   findings   on   issue   no.   1   ,   plaintiff   is   not entitled for any amount of interest.

RELIEF 62  In view of my findings on Issue no. 1, 2 and 3, suit of the plaintiff   stands   dismissed.   Decree   of   dismissal   be   prepared accordingly.   File   be   consigned   to   record   room   after   due compliance. 

ANNOUNCED IN THE OPEN COURT ON 19.09.2016  (SHAILENDER MALIK)                       ADJ­16 (CENTRAL)          TIS HAZARI COURTS:

  DELHI CS NO. 167/16 Savita Mehta  V. Chandan & Chandan Ent. Page 53 of 53