JUDGMENT :

DIVYESH A. JOSHI, J.

1. The appellants-State of Gujarat and another are the original defendants and the respondent M/s. Valji Poona and Company is the original plaintiff in the proceeding before learned Civil Judge, (S.D.) at Gandhinagar in Special Civil Suit No.77 of 1997. For the sake of brevity and convenience, the parties are herein after referred to as “the defendants” and “the plaintiff” respectively.

2. The short facts leading to the filing of the suit are as under:-

2.1 The plaintiff is engaged in the business of undertaking, on contract, heavy civil engineering works, in and outside Gujarat State. The plaintiff and defendant no.1 entered into a contract No.B2/2 of 1979-80 for construction of Earthern Dam, Spilway and Head Regulator on left side of Kakdiamba Irrigation Scheme after following prescribed procedure of public tender.

2.2 Under the provisions of the contract, the plaintiff was required to start the said works on 7.12.1980 and complete it in all respects on or before 6.2.1982. The plaintiff completed the work on 31.3.1982 and Completion Certificate was issued on 19.9.1986 by the defendants. The contract and the law imposed certain obligations and promises,