JUDGMENT

Raveendran, J.—This appeal by special leave is against the judgment dated 17.8.2001 of the Rajasthan High Court in Civil Misc. Appeal No. (SB) 227/1997.

2. In pursuance of a tender invitation dated 14.10.1991 issued by the appellant for supply of Metallurgical coke (for short ‘coke’), the respondent submitted its offer dated 8.11.1991. The appellant accepted the said offer and placed a purchase order dated 16/18.12.1991 on the respondent for supply of 15,000 MT of coke, to be supplied to its Vizag Unit and Tundoo Unit. Clause (2) of the purchase order contained the specifications for the supply of coke and Clause (3) related to price. The price agreed, exclusive of taxes and duties, was Rs. 2,231/- per MT of coke. The loading charges was Rs. 32 per MT. The transportation charges were Rs. 950 per MT for delivery at Vizag Unit and Rs. 120 per MT for delivery at Tundoo Unit. Therefore, the FOR price was Rs. 3,213 per MT for Vizag Unit and Rs. 2,383 per MT for Tundoo Unit. Clause 5 provided for price variation. Sub-clause (i) thereof provided for variation in prices of coke and sub-clause (ii) provided for variation in transportation cost. As we are concerned with the variation