KOCHHAR CONSTRUCTION CO Vs. UNION OF INDIA

JUDGEMENT

(1.) , J-

(2.) THE Executive Engineer, P & T (Civil) Div. No. III P.O. Building, Chankyapuri New Delhi on behalf of the President of India, invited tenders for "construction of Vertical Extension of T. E. Building. Chankyapuri. THE estimated cost of the work was Rs. 5,22,818. M/s. Kochhar Construction Company (hereafter to be referred as the contractor) submitted its tender for executing the said work for a sum of Rs. 8,84,534.66. This tender was accepted by letter dated July 29, 1980 and the work was awarded to the Contractor vide agreement No. 23/PE III/80-81. Under the agreement the department was to provide 230 metric tonnes of cement; 67.5 metric tonnes of TOP.. steel and 4 metric tonnes of mild steel at the rate of Rs. 495; Rs. 3180.50 and Rs. 2455 per metric tonne respectively. THE work was to commence on August 13, 1980 and was to be completed by August 12, 1981. THE work could not be completed by the stipulated date and the agreement was rescinded by letter dated August 21, 1982.

(3.) ON the pleadings of the parties following issues were framed:-