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2006 Supreme(SC) 1132

ARIJIT PASAYAT, S.H.KAPADIA
Kerala State Electricity Board – Appellant
Versus
Hindustan Construction Co. LTD. – Respondent


JUDGMENT

Arijit Pasayat, J. - Challenge in these appeals is to legality of the judgment rendered by a Division Bench of the Kerala High Court holding that the appellant was liable to implement the order of the appellant-Board dated 19.4.1994. Direction was further given to issue consequential orders on the basis of decision taken on 12.4.1994 and 30.4.1994 to make necessary payments as expeditiously as possible. The decision of the Board to cancel the earlier order dated 19.4.1994 on the basis of a decision taken at the meeting held on 25.1.1997 and communicated by order dated 29.3.1997 was set aside.

2. Background facts in a nutshell are as follows:

Appellant-Kerala State Electricity Board (hereinafter referred to as KSEB) entered into a contract with respondent no.1- Hindustan Construction Company Ltd. (in short HCC) for the construction of a 12.09 Km long and 6.65 M diameter concrete power tunnel for Lower Periyar Hydro Electric Power Project on 27.02.1984. The contract work had to be completed within 68 months from the date of the contract; i.e. to be completed on or before 26.10.1989. The estimated PAC of the work was Rs.14.92 crores including cost of departmental materials and




































































































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