PANNA LAL KANHIYA LAL BANSAL Vs. THE GENERAL MANAGER EASTERN RAILWAYS
LAWS(CAL)-2017-2-86
HIGH COURT OF CALCUTTA
Decided on February 24,2017

Panna Lal Kanhiya Lal Bansal Appellant
VERSUS
The General Manager Eastern Railways Respondents

JUDGEMENT

I.P.MUKERJI,J. - (1.) A most interesting question, arising out of elementary principles of the law relating to contract, has arisen in this case. Under the common law, as embodied in the Indian Contract Act 1872, an offer may be revoked by the offerer at any time before the communication of the acceptance by the offeree. Communication of acceptance as against the offeree is complete as soon as it is put into a course of transmission to the person to whom it is made. This principle can be found in sections 4 & 5 of the Indian Contract Act 1872.
(2.) I would at the outset reject the contention of the railways that under the Indian Railway Standard Conditions of Contract the offer could not be revoked before hundred days, for the reason that it is absolutely contrary to the said provisions of the Indian Contract Act 1872 and hence invalid.
(3.) On or about 13th July 2015 the railways issued an offer to the writ petitioner to supply them with 1,43,016 Elastic Rail Clips after manufacturing them, confirming to the Item Code ERCMKV. According to the petitioner, by their letter dated 27th October 2015, sent also by an electronic mail on 28th October 2015 at 6.37 P.M. the offer was withdrawn. It is said on his behalf that it was so withdrawn because of some mistake in understanding the specification resulting in a lower rate quoted. There is absolutely no dispute that the letter was received by the railways on 4th November 2015. Meanwhile on 3rd November 2015 they accepted the offer.;


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