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1969 (8) TMI 78 - SC - Indian LawsWhether the Government was entitled in the circumstances of the case to forfeit under cl. 8 the terms of the contracts the deposits made for securing due performance of the contracts? Held that:- The High Court was in error in disallowing the plaintiff’s case. The High Court has held that the plaintiff is not entitled to any interest prior to the date of the suit. No argument has been advanced before us challenging that view. Since interest was not recoverable under any contract or usage or under the provisions of the Interest Act, 1838 the High Court allowed interest at the rate of 3% per annum on ₹ 416.25 from the date of the suit, the rate of interest allowed on the claim decreed also should not exceed 3 per cent per annum. We set aside the decree passed by the High Court and substitute the following decree - "The Union of India do pay to the plaintiff ₹ 18,500/- with interest at the rate of 3% per annum from the date of the suit till payment." The plaintiff was guilty of breach of the contracts. Considerable inconvenience was caused to the Military authorities because of the failure on the part of the plaintiff to supply the food-stuff contracted to be supplied.
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