I.P.MUKERJI,J. - (1.) The dispute is between the petitioner railways and the private contractor respondent. It relates to the supply of brake blocks. These brake blocks are a very important part of railway safety. When the brakes are applied by the engine driver, the brake blocks attach to the wheels. This item must have a specific level of hardness. If it is too hard it will jam the wheel and damage it. If it is too soft it will not slow down the train.
(2.) The RDSO is an agency of the Railways. It advises them on the quality and standard specification of the goods to be purchased by the railways. It advised them, at the material point of time, that the brake blocks to be ordered by the railways should be lower in hardness. In other words, the co-efficient of friction should be lower.
(3.) On 17th July, 2006 the railways placed an order with the respondent for supply of 72,000 brake blocks of the specification C-9810 recommended by RDSO. The supply was to be completed by 31st October, 2006. Initially, the respondent made supply of 47,000 brake blocks. They were paid for, by the petitioner. After accepting the goods and making payment for them, the railways realised that the goods did not conform to the standard of RDSO and that this factor had been overlooked by them. When the respondent came forward to supply an additional 11,000 brake blocks the same were not accepted by the railways. The respondent was paid for the 47,000 brake blocks. Out of these 47,000 brake blocks, the railways have found 19591 to be defective. They laid a claim for Rs. 54,98,410.06 on the respondent. This amount according to the railways had to be refunded by the respondent from the said sum received by them.;