JUDGMENT :

Prathiba M. Singh, J.

The short question that arises in the present case is as to whether there existed an obligation on Respondent No.1-Psysteme GmbH and Respondent No.2-M/s Mantri Enterprises (hereinafter the Suppliers) for obtaining comprehensive marine cum erection insurance (hereinafter CME insurance) and if so, the scope of the said insurance policy. The Petitioner-Steel Authority of India Limited (hereinafter "SAIL") floated a global tender on 20th October, 2000 for design, engineering, supply of plant equipment and installation, commissioning and testing of width measurement system (hereinafter, system) in its Hot Strip Mill, Rourkela Steel Plant. Respondent No. 1, a German company and its Indian agent, Respondent No.2-M/s Mantri Enterprises submitted their bids. The Suppliers were asked to accept the ocean freight and insurance policy in Indian rupees, and were asked to quote prices as per revised format. Finally, the bid of the Supplier was found to be the lowest bid and the letter of intent was issued on 2nd July, 2002, for the award of work of a total val