N. SARAVANAN, SOLE PROPRIETOR, NSM TRANSPORT, EX. HTC, CW, TRICHY, 71/18A, NANDAVANAM STORES, PALAKKARAI, TRICHY Vs. CENTRAL WAREHOUSING CORPORATION, 4/1 SIRI INSTITUTIONAL AREA, HAUZ KHAS, NEW DELHI

JUDGEMENT

(1.) The petitioner entered into a contract with the first respondent being the contract of handling and transport of food grains, fertilizers etc. In fact, the petitioner was supposed to store and transport the food grains on behalf of the first respondent. Accordingly, the contract was awarded on 02.05.2001 in the nature of Adhoc H and T contract. It was followed by an agreement executed on 11.05.2001. Clause IX of the tender deals with period of contract in the following manner.

(2.) The agreement signed between the parties provides as follows:

(3.) From the above, it can be seen that though the period of contract is only for a period of three months, the first respondent can extend it for the three months on the same rates, terms and conditions. Thus, Clause IX was also incorporated into the agreement between the parties. This is for the reason that the commodities being perishable and involving public interest, as the food grains are to be distributed to the general public, the work cannot be left in the midway.