JUDGMENT

Markandey Katju, J.—

1. These appeals have been filed by special leave against the impugned judgment and order dated 2151 March, 2002 of the Kerala High Court in MFA No. 452 of 1997.

2. Heard learned counsel for the parties and perused record.

3. The appellant, Asian Techs Ltd entered into an agreement dated 2.9.1986 with the Union of India for construction of ‘Provision of Lab and Administrative Block etc for NPOL at Kakkanad, Cochin. The probable amount of contract was Rs. 3,58,96,665/-, and the construction was to be completed before 8.9.1988. The period of the contract was 24 months. Ext R1 is the agreement and Ext R1 (a) is the General conditions of contract known as IAFW - 2249. According to the appellant, due to the delay caused by the respondent, the project could not be completed by 30.6.1990. According to the appellant, the delay was because the site of the work proposed was changed by the respondent subsequent to the signing of the agreement. Also, the design and structural particulars of the building were fundamentally altered by the respondent by omitting the basement floor itself. The respondent nominated the suppliers of prime cost items belatedly. They di