JUDGMENT :

A.M. Khanwilkar, J.

Leave granted.

2. This appeal challenges the judgment of the Division Bench of the High Court of Orissa at Cuttack dated 7th November 2012 in Writ Petition (Civil) No. 1093/2006.

3. Briefly stated, on 2nd December 2002 the appellants issued notice inviting tenders for the work of extraction and transfer of Coal/Coal Measure Strata (CMS) by deploying “Surface Miners” on hiring basis at various Open Cast Projects, inter-alia, at Lakhanpur.

The respondents were declared the lowest bidder having quoted Rs.17/-per cubic meter for the stated contract. A letter of intent was issued in favour of the respondents on 4th April, 2003 which was accepted by the respondents on 14th April, 2003. Work order was issued in favour of the respondents on 23rd April, 2003 and a formal agreement was executed between the parties on 26th May 2003. The relevant clauses of the agreement are clauses 2 to 5 which read as under:-

“2. Time shall be considered as one of the essence of the contract and the time for the completion of the contract shall be counted from 16.04.2003 of from