S.B. SINHA, J - (1.) THESE appeals arise out of a common judgment and order dated 15-9-1998 passed by a Division Bench of the Gauhati High Court in FA No. 8 of 1993 whereby and whereunder an objection filed by the Union of India purported to be in terms of Section 30 of the Arbitration Act, 1940 was allowed in part.
(2.) THE parties hereto admittedly entered into a contract for construction of six permanent major bridges on Lekhabali Basar-Along Road in State of Arunachal Pradesh wherefor a notice inviting tender was issued by the Chief Engineer, Project Vartak, Director General (Border Roads). Shri D. D. Sharma, appellant in Civil Appeal No. 6678 of 1999, (hereinafter referred to as 'the contractor') pursuant thereto and in furtherance thereof made an offer. Negotiations admittedly took place between the parties in relation thereto. The notice inviting tender, inter alia, stipulated that the entire work was to be completed within 36 months from the date of handing over the site which would be within one month from the date of issue of acceptance letter. It was further stipulated that the notice of tender shall form part of the contract. It appears that the Union of India proposed an alternative design and in response thereto the contractor by his letter dated 25-8-1983 made an offer on the terms and conditions stipulated therein, Clause 6 whereof reads as under: "All other terms and conditions will be as per NIt except that the tender isvalid for all the 6 bridges and cannot be divided. To avail the coming working season if the work is allotted within 60 days of opening of the tender, we are ready to offer suitable rebate."
(3.) THE Union of India in response thereto showed its inclination but requested the contractor to withdraw various stipulations/conditions specified in his tender in terms of a letter dated 30-9-1983 stating : "You are requested to withdraw various stipulations/conditions specified by you in your tender as brought out above. In case you consider that the withdrawal of the stipulation/conditions involve financial effect you are requested to indicate the same for each withdrawal/modification of condition separate itemwise." The contractor replied thereto stating : "We are pleased to withdraw all our terms and conditions besides our condition No. 4 for design assumption and the interim payment schedule as the same has been prepared keeping conformity with the estimate. As such the same will form a part of contract. We are also pleased to inform you that if the work is allotted to us, we will offer a rebate of Rs. 90,000.00 only per bridge. For withdrawal of the above stated conditions and for offering rebate, the Department will have to give us 10% advance over our L.S. Tendered amount against H. G. Bond of Industrial Co-operative Bank Ltd., Gauhati. This 10% advance will have to be adjusted proportionately along with the interim payment and the B. G. Bond for the adjusted amount will have to be released from time to time.";