- (1.) The petitioner in this application has, inter alia, prayed for the following reliefs :- "(a) a writ or in the nature of mandamus do issue commanding the respondents :- (i) to rescind, cancel and/or withdraw the said purported letter of cancellation of the contract dated 12th December, 1995. (ii) to desist from giving any effect or further effect to and/or from taking any step or further step in pursuance of the said purported letter of cancellation of the contract dated 12th December, 1995; (iii) to desist from floating any further tender or placing any further order or accepting any delivery of making any payment in respect of PVC pipes of 100 mm diameter before accepting and plying for the PVC pipes manufactured by the petitioner No. 1 ; (iv) to command the respondent-authorities to take delivery of and pay for 32,250 meters of 100 mm diameter PVC pipes and 46,000 meters of 200 mm diameter PVC pipes manufactured by the petitioner No. 1 within 30th November, 1995.(b) Declaration that letter of termination dated 12-12-1995, being Annexure 'P' hereto is wrongful, bad and illegal and the respondents are bound to take delivery of PVC pipes under the contract dated 16-1-95 which have already been inspected and approved the remaining pipes after inspection.(c) A writ of or in the nature of certiorari do issue directing the respondents to certify and transmit to this Hon'ble Court all letters, papers and documents relating to the PVC pipes in respect of 110 mm and 200 mm diameter concerning the contract entered into with the petitioner No. 1 for supply of PVC pipes and the purported cancellation thereof and other records concerning the aforesaid PVC pipes from 30th November, 1995. So that conscionable justice may be dead upon considering the same." The fact of the matter lies in a very narrow compass. The petitioner admittedly entered into a contract for manufacture and supply of galvanising pipe to the State on the terms and conditions laid down under the conditions of contract annexed to the work order dated 22-1194 as contained in Annexure 'B' to the writ application, the relevant provision whereof reads thus:- "The contractor is to deliver the materials on or before the dates mentioned in the tender. Failing which he Shall be bound to pay or allow one per cent on the total amount of the contract for every day not exceeding ten days that the contractor shall exceed the time for delivery as and by way of liquidated damages provided, however, that the Superintending Engineer may in his discretion reduce in such cases as he may 2 think fit, the said amount to such smaller amount as he may decide and his decision in writing in that respect shall be final. The Contractor shall give notice to the Executive Engineer, or the Sub -Divisional Officer of his intention of making delivery of materials, and on the materials being approved a receipt shall be granted to him by the Executive Engineer or the Sub-Divisional Officer, and no material will be considered as delivered until so approved."
(2.) The said contract further provided for the Following conditions :- "(a) Quantity : PVC pipes110 mm diameter-32250 Meters. 200 mm diameter-4600Meters.(b) Price : PVC pipes, 100 mm diameter Rs. 66/-per Metre.200 mm diameter Rs. 221/-per Metre. (c) Time for Delivery: Four months from the date of issuance of the work order.(d) Inspection : By Director General of Supplies and Disposal.First by Director General of Supplies and Disposal and despatch to be made only thereafter.(e) Additional Inspection. :Committee consisting of three Executive Engineers of the directorate shall also inspect the material either at the factory or at stores/ sites. (f) Special terms : (i) The Contractor, (meaning the petitioner No. 1 ) is to deliver the materials on or before the date mentioned in the tender, failing which, he shall be bound to pay or allow one per cent of the total amount of the contract for every day not exceeding 10 days that the contractor shall exceed the time of delivery as and by way of liquidated damages.Provided, however, that the Superintendent Engineer (meaning the respondent No. 5 ) may in his discretion reduce in such case as he may think fit the said amount to such amaller amount as he may decide and his decision in writing in that respect shall be final." ( ii ) In every case in which the payment of allowance mentioned in Clause (2) (meaning immediately preceding clause) shall have been incurred for 10 consecutive days, the Executive Engineer shall have the power either to annul the contractal together or to have the supply completed without further notice at the contractor's risk and expenses as he may deem best suited to the interest of the Government and the contractor shall have no claim to compensation for any loss that he may incur in any way".
(3.) The petitioner for various reasons could not supply the aforementioned PVC pipes, within the stipulated period and thus, prayed for an extension of time for supply. Such a prayer was allowed by the respondents in terms of the letter dated 21-9-95 as contained in Annexure 'J' to the writ application subject to the conditions mentioned therein.;