1. This appeal is directed against the Judgment and Order dated 6th July 2007 passed by the VI Addl. City Civil Judge, Bangalore City in A.S. No.26/2003.

2. The records reveal that the appellant herein – Mysore Minerals Limited (‘MML’ for short) issued tender notice on 18.5.1995 inviting bids from the registered PWD contractors for ‘Handling Earthwork Excavation in certain of its mines in Chromite Sector’. The appellant is a Company registered under the Indian Companies Act engaged in extracting and exporting of minerals and it is a State Government undertaking. The respondent herein participated in the tender process by submitting his bid. A Letter of Intent was issued by the appellant on 4.7.1995 in favour of the respondent entrusting the work at an estimated cost of Rs.7,18,90,682/- (approximately Rs.7.18 crores). An agreement came to be entered in writing between the appellant and the respondent on 10.7.1995 for execution of the work. Clause-3 of the said agreement provides that the work is required to be completed within six months from the date of the agreement. On 11.7.1995 the work order was issued. The work order stipulates that 2,00,000 cubic meters of “loose soil