Judgement

DUA, J.: The appellant in this appeal with certificate from the judgment and decree of the Allahabad High Court, had in February 1944 submitted a tender for the supply of meat to the army authorities at Allahabad and Banaras. This tender was accepted in March 1944 for the supply of meat for one year from April 1, 1944 to March 31, 1945. The formal acceptance was conveyed on May 18, 1944. The controversy centres round the condition contained in para 51 of the special conditions for the meat supply. This condition reads as under :

"51. (a) No enhancement of rates will be considered in the case of contracts concluded for periods of 3 or 6 months.

(b) In the case of annual contracts, revision of rates i.e. increases or decreases, will be provided for, but no revision will be considered or allowed within six months of the commencement of the contract.

(c) Rates for annual contracts will be subject to review, according to the rise or fall of market rates by referees appointed by Government, the reviewing Tribunal for contracts to consist of the Deputy Commissioner or his representative, the C. R. I. A. S. C. or his representative and the local purchase officer (Military). The three members will constitute a quorum.

The contractor will attend to present his case, but will not be a member of the Tribunal.

The final recommendation in all cases reviewed, shall rest with the officer sanctioning the contract."

2. On September 4, 1944 the appellant wrote a letter to C. R. I. A. S. C. (Commander Royal Indian Army Supply Corps) Lucknow, requesting for increase of rates. In October, 1944 he sent a reminder praying for immediate increase of the existing rates as contemplated by condition 51(b). In December, 1944 a Tribunal was constituted at Allahabad for the purpose of reviewing the contract rates of the supply of meat at Allahabad. After considering the matter from the various aspects brought to the notice of the Tribunal, recommendation was made for enhancing the rates as contained in Ex. G. On April 24, 1945 the appellant applied for the refund of the security amount of Rs. 18,100 paid by him along with the tender. Along with this application a No Demand Certificate was given by the appellant. The appellant thereafter sent several reminders to C. R. I. A. S. C. regarding enhancement of the contract rates. On January 2, 1946 the appellant inquired from C. R. I. A. S. C., Lucknow as to when the question of enhancement of rate would be finally settled (Ex. 15). In reply to this inquiry on January 9, 1946 the headquarters at Lucknow informed the appellant that his case had been held up at the headquarters pending inquiry from the civil authorities about the market rates (Ex. 19). A copy of this letter was also sent to the O. C. I. S. S. D., Banaras, with the following note:

"Reference your No. 0709-C of 9th December, 1945. Please obtain the Civil Market rates personally in consultation with the Civil Authorities and arrange to hold tribunal with reference to this office No. 8601-ST of 3rd July, 1945. The proceedings of tribunal together with the documents referred to in this office No. 8601-ST. 13th of April, 1944 should immediately be forwarded to this H. Q. for submission to higher authorities".

After some further correspondence between the appellant and the headquarters at Lucknow on March 26, 1946, the latter wrote to O. C. I. S. S. D., Allahabad that the prayer for the revision of contract rates for the supply of meat by the appellant at Allahabad had been rejected by the higher authorities (Ex. 25). On April 7, 1946 the appellant wrote a letter to the headquarters at Lucknow requesting them to supply him the reasons for the rejection of his claim by the higher authorities. On April 15, 1946 the appellant was asked to attend the meeting of the Tribunal on April 29, 1946 for representing his case. This letter was received from the O.C.I.S.S.D., Banaras. On April 17, 1946 the appellant was informed by the headquarters, Lucknow that he sh