JUDGMENT

Balakrishnan, J.-Leave granted.

2. The appellant construed a hotel resort by name "Timber Trail Heights" at Bansaar in Himachal Pradesh. This place is at a high altitude of 5000 feet from sea level and in order to ensure a quick access for the visiting tourists to this resort, the appellant wanted to have a passenger ropeway system and for that purpose, the appellant entered into a contract with the respondent, by name, Usha Breco Limited. The respondent completed the work relating to ropeway system and handed over the same to the appellant on 27.4.1988. Initially, the ropeway system was being operated and maintained by the employees of the respondent, but later on the appellant absorbed those workers as its own employees. According to the appellant, right from the beginning, the ropeway system was not functioning well and it did not meet the specification required by the appellant. The appellant had been making a request to the respondent to rectify the defects but the latter failed to rectify the same. The appellant also alleged that the respondent did not cooperate with the appellant for getting clearance from the Himachal Pradesh Ropeway Inspector. The Inspector di