CENTRAL COALFIELDS LTD Vs. AJAY TRANPORT COMPANY

JUDGEMENT

(1.) This appeal is directed against the judgment dated 07.09.2007 passed in C.W.J.C. No. 227 of 1999 (R) whereby the learned single Judge allowed the writ petition filed by the respondents and directed the appellant to pay the amount claimed by the respondents together with interest.

(2.) The facts of the case lie in a narrow compass : The appellant invited tender on behalf of Central Coalfields Limited, Sayal Area for the work for transportation of coal from stock of Urimari to Central Saunda Railway siding vide tender notice dated 25.8.1992. The respondent along with others submitted tenders and the work was finally allotted to the respondent for transportation of coal in between 13.10.1992 to 12.10.1993. The respondent started work and after some time stock of coal available to Urimari stock was exhausted from 10.10.1993 and the appellant closed the work and paid the agreed amount. However, respondent received letter from the appellant dated 3.10.1993 directing the respondent to continue the transportation beyond 12.10.1993 on the existing terms and conditions. In response thereto, respondent by letter dated 7.10.1993 informed the General Manager that the coal stock depot within the agreed distance was almost liquidated and the new stock depot is not covered under the agreement, hence the question of transportation of balance quantity beyond 12.10.1993 from longer distance did not arise. However, the respondent agreed to continue transportation of coal from new site beyond 12.10.1993 on the assurance given by the appellant that payment shall be made as per the new rate to be arrived at and the respondent would be paid provisional payment subject to the adjustment according to new tender rate, Respondent-contractor executed the work and demanded difference of the rate which was ultimately refused. Hence writ petition was filed for direction upon the appellant (respondent in the writ petition) for payment of the promised amount with interest and cost.

(3.) Learned single Judge referred some of the letters issued by the appellant. First letter is dated 4.11.1993 which reads as under :