SANJAY KISHAN KAUL, J.

1. The appellant, a contractor, participated in the tender for construction of Municipal Staff Quarters floated in June, 1991 and was successful. Subsequently, a work order dated 16.01.1992 was issued in favour of the appellant for an estimated cost of Rs.1,20,77,499/-. The work had to commence on 25.01.1992 and was required to be completed within a period of 18 months.

2. The work actually commenced only on 08.01.1993 and was completed on 10.01.1997. It is relevant to note that the time for completion of the contract was extended till the aforementioned date without levy of any penalty. The appellant was required to submit a final bill in terms of clause 7 of the agreement but the undisputed fact is that no such final bill was submitted. On the other hand, the appellant claimed that it was addressing various communications to the respondent for payment of the amount, but to no avail (these letters are disputed by the respondent). The fact, however, remains that on 12.12.2001 a payment of Rs.18,72,839/- was made to the appellant. The appellant called upon the MCD vide its letter dated 15.01.2002 requesting payments alleged to be outstanding to be rel