SANJAY KISHAN KAUL, J. (Oral)

1. The appellant floated tender No.05/DSE-C/95-96 dated 22.03.1996 for supply of 60,000 cubic metres of 65 mm gauge machine crushed stone ballast at Tughlakabad. The respondent was the successful tenderer and was awarded the contract for supply of 30,000 cubic metres of the stone ballast. The award of work was issued on 05.07.1996 though the formal contract/agreement was executed on 09.08.1996.

2. Soon after the date of award of the work on 05.07.1996, there was a hike in the sales tax by the Haryana Government from where the raw material had to be sourced and the rate was increased from 9 to 15 per cent on 09.07.1996. The respondent, faced with the prospect of such imposition, made a representation dated 11.07.1996 requesting for a 12 per cent increase in the awarded rates on account of such levy. ECHO is on.

3. The formal acceptance of the tender of the respondent was communicated on 12.07.1996 which ultimately gave rise to the agreement being executed on 09.08.1996.

4. It is the case of the respondent that he made repeated representations in pursuance to the original representation dated 11.07.1996 but there was no response from the appellant.

5.

Click Here to Read the rest of this document