1. On consideration, the petition is admitted to hearing and with the consent of learned counsel for the parties, taken up for final disposal at its threshold.

2. Petitioner is a business concern having its head office at 14/2 Extension Trikuta Nagar, Jammu. It is engaged in supply of Defence equipments to the armed forces. The petitioner responded to Tender Notice NIT No. 29419/SP/SM/08-09/ES-4 dated 15.01.2009 floated by the respondents for purchase of 25 Nos. of Snow Mobiles. Colonel GS (Engrs/Plg) respondent No. 3 in the petition, on 26th July, 2009 asked the petitioner to supply one number Snow Mobile for trial on "No Cost No Commitment" basis. The petitioner placed the order for supply of one number Snow Mobile on Polaris Industries, 2100, Highway-55, Medina, MN 55340, U.S.A. The General Officer Commanding in Chief (GOC-in-C) in the month of November, 2009 issued a Customs Duty Exemption Certificate in terms of Notifi#31;cation No. 39/96 SL No. 10(X), so as to facilitate import of the Snow Mobile without burdening the petitioner with the custom duty payable on the import of the machine. The Colonel GS (Engrs/Plg) -respondent no. 3 vide letter dated December, 2009, further certified that one number Snow Mobile required by the Armed Forces was not meant for sale and requested for release of the consignment.

3. The respondent no. 3 vide letter dated 18th December, 2009 asked petitioner to handover the Snow Mobile at 'N' Area, Chandigarh at the earliest for trials. Though the record does not reveal whether one the Snow Mobile was actually delivered and whether the trials were conducted and its performance found satis#31;factory by the experts, it appears that the respondents placed supply order with the petitioner on 10th September, 2010 for supply of 21 numbers of Snow Mobiles at the cost of Rs. 8,15,000/- per unit and a total cost of Rs. 1,71,15,000/- excluding the tax payable on the transaction, subject to the conditions laid down in Part I to Part V of the supply order.

4. The Snow Mobiles in terms of the Supply Order were to be delivered within 130 days from the effective date of the Supply Order, i.e. by 23rd January, 2011. The respondents in terms of the Supply Order reserved a right to unilaterally cancel the Supply Order, in the event, the machines were not delivered within the delivery period. The extension of delivery period was to be at sole discretion of the respon#31;dents.

5. The petitioner for one or other reason could not adhere to the time schedule within which the supplies were to be made. The petitioner vide communication dated 19th January, 2011 explained the delay in making the supplies on the ground that because of disruption in power supply in the month of December and because of severe snow storms, the production in the factory was disrupted which was resumed sometime before the date of communication and sought an extension of 60 days. The petitioner vide communication dated 5th May, 2011 sought further extension in the delivery period upto 20th September, 2011 and extended an assurance that 10 Snow Mobiles would be arriving in India by 30th July, 2011 and the balance by 15th September, 2011. It appears that respondent no.2 on 8th August, 2011 issued Custom Duty Exemption Certificate for 14 Nos. of Snow Mobiles and on 19th August, 2011 issued Custom Duty Exemption Certificate for 6 Nos. of Snow Mobiles. However, as Custom Duty Exemption Certificate on 29th October, 2011 issued by the respondent no. 2 relates to 21 "ARCTIC BOGGAN WITH RAILS" and may not be referable to the Snow Mobiles.

6. The 21 number Snow Mobiles ultimately were delivered at 17 Engrs Del at Chandigarh on 07.10.2011 and the respondent No. 3, accordingly, informed on 08.10.2011 The respondent No. 3 vide communication dated 10th January, 2012 requested the petitioner to depute his representative to HQ Northern Command, MGGS (SD&WE) Secretariat on 24th January, 2012, so as to workout the modalities as regards, "Engineer Support Package, spa

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