JUDGMENT

Sanjay Kishan Kaul, J.

South Eastern Coalfields Ltd., appellant no.1 is a Government company registered under the Companies Act, 1956. The appellant no.1 floated a tender for the work of "Hiring of HEMM and allied equipments including digging machines fitted suitable slump breaker for excavating overburden (including drilling in all kinds of strata/overburden) loading into tipples, transportation, unloading the extra waited material and silt, dumping dozing scrapping/removal bands preparation/maintenance of haul road water sprinkling and spreading of material at the site shown and as per direction of the management/Engineer In Charge of Patch-D, Mahan I OCM of Bhatgaon Area" on 23.06.2009. Bids were received and respondent was the successful bidder. In view thereof a Letter of Intent ('LoI') was issued bearing No.2415 dated 05.10.2009 awarding the contract for a total work of Rs.387.40 lakh. The LoI stated as under:

i. A direction was made to the respondents to mobilize equipment for executing the work to handle minimum allotted Cu.m. per day and "commence the work immediately." Towards the said objective the respondent was directed to report to the Chief General Manager, Bha