JUDGMENT

SABYASACHI MUKHARJEE, J.

( 1 ) LEAVE granted. Appeal is disposed of by the judgment herein.

( 2 ) THIS appeal challenges the order of the High court of Rajasthan, dated 16/03/1988. The respondents tender for construction of complete masonry dam (Civil Engineering Works) Mani Bajaj-Sagar Project, Banswara, was accepted by the appellant for a sum of Rs. 5,90,30,791. 00 vide letter dated 29/04/1974 and a provisional agreement was entered into between the parties on 23/05/1975. The construction was commenced by the respondent-company but it did not complete the same and, it is alleged, left the work unfinished in the year 1979, which was of the value of Rs. 1,79,80,054. 00.

( 3 ) THE letter of acceptance was dated 23/05/1975. It is stated that the respondent did not start (sic complete) the work in spite of written notices and, ultimately, by a letter dated 24/12/1979 of the Executive Engineer (Dam Division), Banswara, the respondent was informed that as it had committed breach of the conditions of the contract, the same had been terminated and that the State government would complete the work under the clauses and conditions of the contract. The work had to be completed departm