- (1.) As identical questions arise for consideration in the above two writ petitions and the orders impugned in the above writ petitions being identical in terms, the above two writ petitions were heard together and are being disposed of by this common order. The facts in W.P.No.21080 of 1997 alone are stated hereunder for appreciation of the contentions.
(2.) The petitioner entered into a contract on 3-7-1991 with the Respondent - Railways for manufacture and supply of 5,00,000 numbers of BG monoblock concrete sleepers of 60 kg FOR works station, Kovvuru. Under the said contract, it is stated there are six (6) principal inputs which are necessary for manufacture of each BG monoblock concrete sleeper. They are: 1. Special Cement 2. HTSwire 3. Inserts (Malleable Cast Iron) 4. Metal (Crushed stone) 5. Sand 6. Wages
(3.) It is the case of the petitioner that under the terms of the contract, HTS wire strand and Malleable cast iron shall be supplied as free items by the respondents and subsequently the petitioner-Company was requested to purchase the HTS wire and the cost agreed to be reimbursed by the Railways. The petitioner- Contractor is required to exercise utmost economy in the purchase of Special Cement and HTS wire and that escalation will be admitted on the basis of the actual price paid subject to a ceiling on the prices as per the directives contained in the Railway Board Letter dated 27-4-1997.;