JUDGMENT

SABYASACHI MUKHARJEE, J.

(1) SPECIAL leave granted.

(2) IN the special leave petition notice was issued on 13/07/1987 and it was directed that the matter would be disposed of at the notice stage. After hearing the rival contentions, we grant leave to appeal and dispose of the appeal by the order hereunder.

(3) THIS is an appeal from the judgment and order of the learned Single Judge of the Allahabad High court (Lucknow bench) in Revision Petition No. 157 of 1986. It appears that the appellant, a State government enterprise, on or about 17/05/1983 entered into a contract with the respondent - a private limited company for the supply and installation of a vanaspati manufacturing plant at Halduchaur in the District of Nainital, in the State of Uttar Pradesh. The contract bond contemplated, according to the appellant, guaranteed performance of work at various stages in accordance with the time schedule prescribed therein and provided for completion and commissioning of the plant after due trial run by 15/05/1984. The appellant contends that time was essentially and indisputably the essence of the contract.

(4) THE contention of the appellant was that