(1.) This is a peculiar case, where the Electricity Department viz., the TANGEDCO, the appellant herein suffered a "shock" as a result of nebulous contractual obligations and counter obligations.
(2.) To put the claim of the appellant/electricity board in a nut shell, the appellant, for the purpose of installing a power house at Parson's Valley unit, Kundha Ultimate Stage Hydro Electric Project in the State of Tamil Nadu, invited tenders for design, manufacture, supply, erection and commissioning of a 30 M.W generation unit, together with associated accessories.
(3.) The 1st respondent herein was one amongst many persons who offered bids. As the 1st respondent's bid was the lowest, the appellant issued a letter of acceptance on 24/2/1995, followed by the Purchase Order on 28/3/1995.