Judgement

RABHUBAR DAYAL, J.: The facts giving rise to this appeal, by special leave, are these:

2. The Dominion of India, as the owner of the Madras and Southern Mahratta Railway, represented by the General Manager of that railway, invited tenders for the supply of jaggery to the railway grain shops. The respondent submitted his tender for the supply of 14,000 imperial maunds of cane jaggery during the months of February and March 1948. The tender form contained a note in Para. 2 which was meant for the quantity required and the described dates of delivery. This note was:

"This Administration reserves the right to cancel the contract at any stage during the tenure of the contract without calling up the outstandings on the unexpired portion of the contracts.

The Deputy General manager of the Railways, by his letter, dated January 29, 1948, accepted this tender. The letter asked the respondent to remit a sum of Rs. 7,900 for security and said that on receipt of the remittance, official order would be placed with the respondent. In his letter, dated February 16, 1948, the Deputy General Manager reiterated the acceptance of the tender subject to the respondent s acceptance of the terms an