Hirji Jadva Varsani Vs Pindoriya & Co. (Gujarat High Court)
Mere Admission of Handwriting Doesn’t Prove Dues: Gujarat HC Dismisses Contractor’s Rs. 5L Sales Tax Dispute Recovery Suit
The Gujarat High Court dismissed a first appeal filed under Section 96 of the Code of Civil Procedure, 1908 against the judgment and decree of the 7th Additional Senior Civil Judge, Kachchh at Bhuj, which had partly decreed the plaintiff’s suit by directing the defendant to pay ₹35,096 with interest at 6% per annum from the date of the suit till realization.
The dispute arose from a subcontract dated 6 January 1992 under which the plaintiff executed construction work for police staff quarters at Mandvi, Kachchh after the defendant had obtained the principal contract from the State Government. Following completion of the work, disputes arose regarding payments allegedly due to the plaintiff. The plaintiff instituted a suit seeking recovery of ₹5,06,029 inclusive of interest at 30% per annum under various heads, including security deposit, interest on fixed deposits, unpaid running bills and interest thereon.
The defendant denied the plaintiff’s claims, contending that there was no agreement regarding payment of interest and that no amount remained outstanding. It also contended that certain sales tax dues were required to be cleared before final settlement. However, the defendant admitted that ₹35,096 remained payable from the security deposit and expressed willingness to pay that amount with interest.
