ANAND CONSTRUCTION WORKS Vs. STATE OF BIHAR

JUDGEMENT

(1.) This is a suit for the recovery of a sum of Rs. 10,977/- which has been deducted by the then Province of Bihar from the plaintiff's bill in accordance with the conditions of a tender for the supply of stones, stone metals and gravel to the defendant for the purpose of repair and construction of certain portions of Grant Trunk Road. The tender was accepted by the Public Works Department of the then province of Bihar.

(2.) The said tender, inter alia, provided the following clauses in the conditions of contract:

(3.) The materials were to be delivered on or before June 30, 1946 under the said contract. Sometime prior to the expiry of the said date of delivery the plaintiff applied in writing for extension on the ground that there were hindrances in the supply of the materials because of want of transport. The plaintiff states that the defendant allowed the time for delivery to expire but did not grant any extension in writing. The defendant by its conduct induced the plaintiff to effect delivery of the materials on the assurance of extending the time for such delivery. By a letter dated November 21, 1944 the plaintiff was informed that the Additional Chief Engineer had refused to grant the plaintiff any extension of time. By another letter dated November 25, 1944 the previous letter dated November 21. 1944 was cancelled. The plaintiff continued performance of the agreement on the basis that the time for the completion of the works thereunder had not expired and the defendant accepted the benefit of such performance of the agreement by the plaintiff.