Sarkaria, J. - (1.) This appeal by special leave directed against a Division Bench judgment of the Kerala High Court raises a question with regard to the validity of an order dated June 20, 1968 whereby the Executive Engineer debarred the appellant from taking any further contract under the Buildings and Roads Division, Ernakulam.
(2.) The appellant is a Government Contractor of 16 years standing. He has been executing major building contracts. The Executive Engineer, P.W.D., Ernakulam (Respondent No. 1) invited tenders for executing certain repairs to the English and Mathematics Blocks of the Maharaja College at Ernakulam. The appellant submitted a tender, dated March 8, 1967, for doing this work. In response to a letter from Respondent No. 1, the appellant sent his consent letter, dated March 27, 1967 (Ex. P-1), agreeing to reduce rates of certain items of the work, on the condition that "as soon as the Selection Notice is issued the building should be got vacated to facilitate the starting of the work." The tender was then accepted by the Executive Engineer and a Selection Notice was issued to the appellant on March 31, 1967, in which it was, inter alia, stated that the "facilities for carrying out the work will be given as soon as you start the work."
(3.) A formal agreement was executed on April 26, 1967, by the appellant and the Executive Engineer. Condition No. 4 of the Agreement stipulated that "time shall be considered as the essence of the agreement and the contractor hereby agrees to commence the work as soon as the agreement is accepted by the competent authority (Executive Engineer) and the site (or premises) is handed over to him (contractor) as provided for in the conditions and to complete the work within 6 months from the date of such handing over of the site (or premises).";