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Case on Law of Quantum Meruit

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Case on Law of Quantum Meruit
Case Analysis

Puran Lal Sah versus State of UP

Submitted by –

Aseem Agarwal (12PGPIM04)

Nitin Gupta (12PGPIM21)

Rahul Jain (12PGPIM24)

Saumitra Das (12PGPIM28)

Nishant Shah (12PGPIM29)

Supreme Court of India

Puran Lal Sah vs State Of U.P on 21 January, 1971
Equivalent citations: 1971 AIR 712, 1971 SCR (3) 469
Bench: Reddy, P Jaganmohan

PETITIONER:

PURAN LAL SAH

Vs.

RESPONDENT:

STATE OF U.P.

DATE OF JUDGMENT 21/01/1971

BENCH:

REDDY, P. JAGANMOHAN

BENCH:

REDDY, P. JAGANMOHAN

DUA, I.D.

CITATION:

1971 AIR 712 1971 SCR (3) 469

1971 SCC (1) 424

ACT:

Contract-Claim on basis of Quantum Meruit - When sustainable

Brief Facts of the Case

The Public Works Department of the State of UP had issued a tender notice to construct Mile 3 of the Nainital - Bhowali Road. They published Schedule B rates based on the calculation that stone would be available within 26 chains. The appellant inspected the site and found that there was stone available for construction within 26 chains. Satisfied he submitted a tender at 13% below the rates given in Schedule B on 30th September, 1946. Finally the tender was accepted and contract signed on 20th November, 1946.

However when the appellant tried to take stone from the specific area, he was stopped by Cantonment authorities. Furthermore he was not given permission from the Cantonment authorities for the removal of stones. As a result he had to get stone from Gadhera and Bhumedar from a distance of 79 and 110 chains respectively. Also during the construction of the road he encountered very hard shale rock that wasn’t mentioned in the contract as result of which he had to do some extra work. He requested for a higher rate from PWD but was rejected. After that he commenced the work, finally when the work was finished the Executive engineer forwarded his request for a higher rate. In his letter dated 15th June 1950 he mentioned that since the appellant was unable to get the stone from within 26



References: 1. Bansal, C L. (2006). Business and Corporate Laws. New Delhi, India: Excel Books. 2. Puran Lal Sah vs State Of U.P. Retrieved from http://www.indiankanoon.org/doc/1394427/ 3. Section 73 in The Indian Contract Act, 1872. Retrieved from http://www.indiankanoon.org/doc/339747/ 4. M/S. Alopi Parshad & Sons, Ltd vs The Union Of India. Retrieved from http://www.indiankanoon.org/doc/1989300/

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