Judgment

N.M.KASLIWAL, J.

(1) SPECIAL leave granted.

(2) THIS appeal by M/s India Meters Ltd., hereinafter referred to as the appellant is directed against the judgment of the High court of Judicature at Madras dated 23/04/1991.

(3) THE Punjab State Electricity Board issued a tender notice by publication in the newspaper Indian Express dated 24/02/1978 inviting sealed tenders for supply of house service electricity meters and Amps. The appellant offered to supply their standard meter type OB-7 and stipulated their own terms of payment and indicated that they would not submit a bank guarantee as demanded in the tender notice. The appellant also sent a telegram on 3/06/1978 reiterating the offer to supply the meters, keeping all their terms and conditions unaltered.

(4) THE Board vide their communication dated 27/07/1978 sent a purchase order-cum-contract for supply of 75,000.00 meters. In this purchase order no reference was made to the terms and conditions of payment and the inability to furnish bank guarantee by the appellant. In clause (20 of the purchase order the Board further mentioned that the meters supplied by the appellant would be