Judgment

SINHA, C.J.I. : This appeal, by special leave, is directed against the judgment and order of the High Court of Patna dated July 13, 1956, disposing of a reference under S. 25(1) of the Bihar Sales Act. 1947, which hereinafter will be referred to as the Act, made by the Board of Revenue, Bihar.

2. The facts of this case have never been in dispute and may shortly be stated as follows. The appellant is a Corporation incorporated under the Damodar Valley Corporation (Act XIV of 1948) and will hereinafter be referred to as the Corporation. It is a multipurpose Corporation, one of its objects being the construction of a number of dams in Bihar and Bengal with a view to controlling floods and utilising the stored water for purposes of generation of electricity. One of such dams is the Konar Dam in the district of Hazaribagh in Bihar. For the construction of the aforesaid Dam the Corporation entered into an agreement with M/s. Hind Construction Ltd., and M/s. Patel Engineering Co., Ltd., on May 24, 1950 and appointed them contractors for the aforesaid purpose. They will hereinafter be referred to as the Contractors. As a result of a change in the design of the Dam, it became necessa