STATE OF GUJARAT Vs. AJANTA CONSTRUCTION CO

JUDGEMENT

(1.) By this appeal, the appellants, State of Gujarat and another seek to challenge the judgement and decree dated 26th December, 1984 passed by the Joint Civil Judge (Senior Division), Amreli in Special Civil Suit No.27 of 1980 whereby their suit against the respondent (original defendant) for recovery of Rs.1209099-30 ps. has been dismissed.

(2.) The facts of the case are that the Executive Engineer, Bhavnagar Irrigation Division, Bhavnagar, (the appellant No.2 herein) had invited tenders for the work of Earthen Dam of Dhatarwadi Irrigation Scheme. The estimated cost of the work was Rs.13,42,347-00 ps. The respondent, a registered firm carrying on work of contracts submitted it -s tender for Rs.16,17,875-26 ps. The respondent -s tender being the lowest; it was awarded the said work. An agreement (Exh.31) was executed between the parties being CB-2 Agreement No.15 of 1969-70. The tender was accepted on 25.3.1970 and work order was issued on 26.3.1970 and the respondent commenced work on the same day. The stipulated period for completion of contract was 24 months. Accordingly, the work was required to be completed on or before 25th March, 1972.

(3.) Thereafter the respondent executed part of the work and in all a total of 10 R.A. Bills amounting to Rs.3,25,983-10 ps. were paid. The 10th R.A. Bill was paid on 30.1.1971. It is the case of the appellants that thereafter, on 7.2.1971, the respondent abandoned the work, hence, vide a communication dated 10.2.1971, the Executive Engineer submitted a proposal to the Superintending Engineer to impose penalty under Clause (2) of the Conditions of Contract.