UNION OF INDIA Vs. HINDUSTAN CONSTRUCTION

JUDGEMENT

(1.) This matter has been placed before me to be heard as ordered by Hon'ble the Chief Justice because of the difference of opinion between the two learned Judges of this Court.

(2.) By judgment dated 13th February, 1997 the learned Single Judge of this Court dismissed the appeal and by another judgment the learned Single Judge allowed the appeal.

(3.) Originally the appeal arose out of the judgment and order dated 1.10.94 passed by the learned Asstt. District Judge No. 1, Cachar at Silchar in T.S. No. 100/91. There was a contract agreement dated 26.5.90 between the Superintending Engineer, Silchar Central Circle, C.P.W.D., Malugram, Silchar on behalf of the Union of India and the respondent-claimant for the work "Development of site for Central School Building at Silchar." The work order was awarded after negotiation with the respondent-claimant vide offer dated 20.5.89 for Rs. 12,92,406/- in a single time tender at the rate of Rs.41.90 per Cu.M. for 31.000 Cu.M. As per the terms of the contract the date of commencement of the work was 10.6.90 and time allowed for completion of the work was 12 months from the date of commencement of the work. Thereafter, a supplementary agreement was entered into between the parties vide agreement dated 28.9.90 under original agreement for further quantity of 100 Cu.M. @ Rs.41.69 per Cu.M. as per the original agreement the work in question should have been completed on or before 9.6.90. However, in view of the supplementary agreement, the date of completion was extended. The bill in respect of the work was paid to the contractor in running account bill from time to time and the final bill was settled and paid to the contractor during May, 1991 after sanctioning of Extra Item Statement No. 1 by the competent authority vide letter dated 8.12.90 and a total of Rs. 16,51,704/- was paid to the contractor.