STERLITE INDUSTRIES INDIA LIMITED Vs. DEPARTMENT OF TELECOMMUNICATIONS

JUDGEMENT

(1.) The Department of Telecommunications (DOT), respondent herein, entered into an Agreement with M/s. Sterlite Industries (India) Ltd., petitioner herein, on 17.12.1996 for su Kasinka Trading v. Union of India (1195) 1 SCC 274) pply of PIJF underground cables on deferred payment basis for a total value of Rs.15.94 crores to the Calcutta Circle of DOT. The delivery period under the Contract as per clause 7.0 (b) was prescribed as four months and the delivery had to be at site basis by rail/road as per clause 7.0 (a). The total quantity to be supplied under the Agreement was 1,74,000 CKM with Calcutta Circle of DOT prescribed as the consignee.

(2.) The petitioner completed the dispatch of 1,29,417.20 CKM of PIJF cables up to 31.3.1997. An all India strike of Lorry Transporters Association took place from 31.3.1997 to 11.4.1997 and the petitioner claimed that though it was ready and willing to supply the cables, on account of the strike there was stoppage of supply of raw material to the factory of the petitioner, which raw material was required for production of cables. It was further claimed that the material, which was already dispatched was held up at different points due to the lorry transporters strike and the factory of the petitioner had to be closed down for 11 days during the aforesaid period of time. The finished goods were also stated not to be transported due to the strike. The petitioner, thus, claimed that the force majeure clause would apply since the conditions were beyond the control of the petitioner. The petitioner vide letter dated 15.4.1997 requested for extension of delivery schedule by at least 25 days. The request was considered and the extension was granted up to 10.5.1997 without application of liquidated damages. The aforesaid letter reads as under: ``Sub : Extension of Delivery period of the Balance quantities of PIJF Cables under Deferred payment Agreement Ref. : Your No. ``SIIL'` ``SLD'` 04.08 dated 15.04.97 Dear Sir, Please refer to your letter as stated in connection with the above subject. The case was put up to the Competent Authority for consideration and I am directed to convey the following decision in the matter :- The delivery period of the balance quantity of stocks which could not be sent on account of nationwide transport strike is extended upto 10-05-1997 without application of LD Clause as per provisions under Clause No. 21, Viz Force Majeure Condition, in the Purchase Agreement. All other terms and conditions of the said Purchase Agreement remains unchanged.'` (emphasis supplied)

(3.) it is not disputed that the cables were supplied by the petitioner during the extended period of time. The matter was, however, raked up again after a lapse of almost two and a half years vide letter dated 22.9.1999. The background to the said letter apparently was an internal communication dated 10.11.1998. The letter reads as under: