ORDER

R.V. Raveendran J.

Under a contract dated 14.7.1981 between appellant and the respondent, the respondent agreed to supply the equipment and engineering drawings and provide the project management and construction supervision to M/s Paul Lindenau GmbH to assist with the design, building, equipping and launching of a drillship known as 'Sagar Prabhat' purchased by the appellant. The appellant had simultaneously entered into an agreement with M/s Paul Nindenau GmbH for purchase of the said drillship. The said drillship equipped and mobilised by the respondent reached Bombay on 5.6.1982. American Bureau of Shipping ("ABS" for short) vide certificate dated 25.6.1982 certified that the machinery of the drillship and the stability of the drillship were in accordance with its rules and standards. On the basis of the said certificate dated 25.6.1982, the appellant took delivery of the Drill-ship on 29.6.1982. The appellant thereafter found some defects in the drill-ship and therefore withheld the payment to the respondent. ABS revised its certificate on 18.6.1985, stating that its earlier certificate dated 25.6.1982 was based on incorrect data supplied by Paul Lindenau GmbH (builder of