- (1.)The Director Stores Procurement Department, Jammu invited tenders from the approved carriage contractors/registered transporters for the carriage of Asphalt/Bitumen packed in drum from Mathura/Delhi/Koyali (Gujarat) to Jammu/ Pampore Stores. The tender was to be received on or before 26-12-1986 up to 3 p.m. In response to this tender notice, the appellants submitted their tender and same was accepted by the Department. As per tender notice, it is provided that the successful tenderer shall have to execute a formal agreement with the Department immediately after his tender is accepted embodying therein all these conditions in elaborate form besides other necessary terms and bind himself/itself to carrying out the work smoothly and regularly.
(2.)A work order dated 12-5-1987 was issued in favour of the appellants. As per work order, the appellants have to execute an agreement within two weeks from the date of issuance of said work order. The appellants executed the agreement and submitted the same to the respondents on 26-5-1987.
(3.)The State Government issued a Notification No. 4/MVD of 1987 dated 11-6-1987 wherein the freight rates have been re-fixed. In view of the said Notification, the appellants represented the Chief Engineer-cum- Director Stores Procurement Department, Jammu that freight rates be also enhanced in its favour by an appropriate margin, enabling the appellants to meet up the higher demands prevailing in the market. The Chief Engineer-cum-Director Sotres Procurement Department, Jammu on the representation of the appellants recommended for escalation charges to be paid to the appellants. The Commissioner /Secretary to Government, Public Works Department, Jammu did not agree with the recommendation of the Chief Engineer.