UNITECH LIMITED Vs. SPORTS DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) The suit is for recovery of money to the tune of Rs.7,77,34,281/- together with interest at 18% per annum on Rs.4,69,99,649/- from the date of plaint till realization filed by the plaintiff, who is a Contractor.

(2.) The plaintiff is a public limited company and the first defendant is a Society registered under the Tamil Nadu Societies Registration Act, 1975, and constituted in terms of G.O.Ms.No.641, Education, Science and Technology Department, for the purpose of development of sports. The second defendant is the Government of Tamil Nadu. The suit is filed for the recovery of money by the plaintiff, who is a Contractor. The amount, being the additional expenses incurred for executing the work of construction of the Stadium for the Seventh South Asian Federation Games (SAF Games), which was held in December 1995.

(3.) Since it was a prestigious project and the same had to be completed within the rigid time-frame, a tender was called for from the pre-qualified contractors. The plaintiff company, one of the leading contractors, was a pre-qualified tenderer. A pre-bid meeting was held between the representatives of various pre-qualified contractors, including the plaintiff, and the officers of various Departments of the second defendant. The plaintiff submitted its tender on 07.01.1995 for the work and subsequently, there were further negotiations in respect of which, the plaintiff was requested to offer a rebate on the rates quoted. After the plaintiff's offer, its overall rebates of quoted rates by communication dated 11.01.1995, the first defendant by its letter dated 18.01.1995 accepted the plaintiff's tender for the work to the value of Rs.20,25,77,152/-. The communication of acceptance of the tender containing several conditions was sent to the plaintiff and the plaintiff had duly signed the same for accepting the award of the work. As per the terms of the tender, the time for completion of the work was 10 months from the 15th day of the work order, which comes to 02.02.1995 and the date of completion was fixed on 01.12.1995.