PRADEEP NANDRAJOG, J.

1. The jural relationship between National Highway Authority of India (NHAI) and Prakash-Atlanta JV (Prakash) was forged as per agreement dated August 10, 2001. The undernoted documents were to be read and constructed as part of the agreement:-

i) Letter of Acceptance;

ii) Notice to Proceed with the Works;

iii) Contractor’s Bid;

iv) Contract Data (Volume I)

v) Conditions of Contract (including Special Conditions of Contract ) (Volume I);

vi) Technical Specifications (Volume II);

vii) Bill Of Quantities (Volume III)

viii) Drawings (Volume IV);

ix) Documents furnished by the Bidder in Volume V of the Bid Document;

x) Addendum to Bid Document; and

xi) Any other document listed in the Contract Data as forming part of the Contract.

2. It is an item rate contract with Bill of Quantities specified. For the listed quantities, the amount payable by NHAI to Prakash is Rs.158,80,42,413/- (Rupees One Hundred Fifty Eight Crores Eighty Lacs Forty Two Thousand Four Hundred Thirteen only). Prakash had to construct the Lucknow Bypass connecting NH-25 and NH-28 via NH-56 passing through the City of Lucknow in the State of Uttar Pradesh. The date of commencement was August 30, 2001 and completion period was 36 months.

3. The Bill of Quantities had specifications pertaining to the different items of work and with respect to Reinforced Earth Structures, clause 703(A) of Technical Specifications, the work was described as under:-

“This work shall consist of Reinforced Earth Structures as per patented reinforced Earth Technology and consisting of precast discreet cruciform concrete facing, high adherence galvanized steel strips with accessories/fittings and backfill material in accordance with the specifications and in reasonably close conformity with the lines, grades, design and dimensions shown on the approved drawings.”

4. The relevant item concerning the Bill of Quantities is 5.41 and it elaborates clause 703(A) of the Technical Specifications by further detailing the materials to be used and the manner of construction, and thus we profitably note item No.5.41 of the Bill of Quantities. It reads as under:-

“5.41 Construction of reinforced earth structures together with the construction of earthwork in layers, assembly & erection of reinforcing element & placement of facing panels and all associated components as per drawings, Technical specifications and clause 703.

a) Construction of reinforced earth walls with precast panels, reinforcing element, foundation beam, caping beam including ground treatment, if required, complete as per drawings and Technical Specification 700.

b) Earthwork for reinforced earth retaining wall technology reinforced earthwork with approved material including all lead and lifts complete as per Technical Specification Clause 703.

c) Construction of PCC strip level footing (35 cm X 15 cm) in M-15 grade concrete complete as per technical specification and drawing.

d) Construction of RCC cast-in situ/precast crash barrier and parapet coping beam with cast in-situ friction slab in M-30 grade concrete as per technical specification and drawing.

e) Construction of Cold formed steel crash barrier as per technical specification and drawing.

f) Construction of catchpits and drainage outlet at intervals with 100 mm dia C.I. Pipes of required length as per drawing.”

5. With reference to clause 703(A) of the Technical Specifications, since it was a part of the tender documents and the notice inviting tender required the prospective bidders to submit their offers by filling up the tender documents, it needs to be noted that before the agreement was executed on August 10, 2001, NHAI wrote to Prakash on March 15, 2001 that an addendum be treated to clause 703(A) of the Technical Specifications. Letter dated March 15, 2001 written by NHAI to Prakash reads as under:-

“To M/s Prakash Building Ass