Arijit Pasayat, J. - (1.) CHALLENGE in these appeals is to legality of the judgment rendered by a Division Bench of the Kerala High Court holding that the appellant was liable to implement the order of the appellant-Board dated 19.4.1994. Direction was further given to issue consequential orders on the basis of decision taken on 12.4.1994 and 30.4.1994 to make necessary payments as expeditiously as possible. The decision of the Board to cancel the earlier order dated 19.4.1994 on the basis of a decision taken at the meeting held on 25.1.1997 and communicated by order dated 29.3.1997 was set aside.
(2.) BACKGROUND facts in a nutshell are as follows: Appellant-Kerala State Electricity Board (hereinafter referred to as 'KSEB') entered into a contract with respondent no.1- Hindustan Construction Company Ltd. (in short 'HCC') for the construction of a 12.09 Km long and 6.65 M diameter concrete power tunnel for Lower Periyar Hydro Electric Power Project on 27.02.1984. The contract work had to be completed within 68 months from the date of the contract; i.e. to be completed on or before 26.10.1989. The estimated PAC of the work was Rs.14.92 crores including cost of departmental materials and the agreed PAC was Rs. 23.59 crores. The cost of departmental materials was Rs.3.94 crores. HCC started the work on 27.2.1984 itself. As the work could not be completed on or before 26.10.1989 i.e. within the original period of completion, KSEB vide order No. TC2-2117/89 dated 14.3.1991 accorded sanction to extend the time of completion of the work upto 30.06.1992 subject to the terms and conditions of the contract then in force. The schedule for the work as was fixed is given below: JUDGEMENT_433_TLPRE0_2006Html1.htm Hcc raises certain claims by way of compensation for the delay. The claims enumerated by Hcc in their memorandum dated 6.5.1992 and subsequently updated upto December 1992, were under the following heads. JUDGEMENT_433_TLPRE0_2006Html2.htm A meeting of the full time members of the Board with HCC was held on 8.7.1992 and the Chairman of KSEB agreed for the formation of a High Powered Committee as desired by HCC.
(3.) ON 02.03.1993, KSEB constituted an Ad hoc committee to look into the claims raised by HCC. The terms of reference of the Committee were limited to the issues raised in the Memorandum dated 6.5.1992 and in accordance with the minutes of the discussion held by the full time members with HCC on 8.7.1992. After the Committee started functioning, further issues such as request of the company for interim relief of Rs.350 lakhs against their claims and issues regarding recovery rate of cement used for concreting non-payable over breakage in the tunnel were also referred to the Committee vide Chief Engineer's letter No.D4-LPT1/93 dated 26.6.1993. On 05.08.1993 Ad hoc Committee recommended interim release of funds amounting to Rs. 250 lakhs.;