JUDMENT

R.M. Lodha, J.

This Appeal, by special leave, arises from the judgment and order dated November 25, 2002 passed by the Punjab & Haryana High Court.

2. The controversy arises in this way. A contract was entered into between the appellant - M/s Ladli Construction Co. (P) Ltd. (hereinafter referred to as ‘the Contractor’), and the respondent Nos. 1 and 2, namely, Punjab Police Housing Corporation Limited and Executive Engineer (Civil), Punjab Police Housing Corporation Limited (hereinafter referred to as ‘the Corporation’) for construction of 240 houses Type II-A at Urban Estate, Ludhiana at an estimated cost of Rs. 273.84 Lakhs. The contract provided in Clause 2 that time was essence of the contract and the time allowed for carrying out work as entered in the tender shall be strictly observed by Contractor. The Contractor could not maintain the time schedule and the progress of the work was not observed. The Contractor was directed to push up the progress of work but that also it failed to do. The Contractor was notified that if it failed to take any action to show requisite progress by 30th of April, 1991, action against it under Clause 3 of the agreement would be taken. St