1. The Tamil Nadu Electricity Board/petitioner herein invited international competitive bids for the Asian Development Bank (ADB) aided External Coal Handling System (ECHS) Tuticorin Phase-II Power Plant Project at Tuticorin in Tamil Nadu in October, 1991. Tata Consulting Engineers, Bangalore were retained by the petitioner as Consulting Engineers for the project. Tamil Nadu Electricity Board, in short, TNEB, divided the entire execution into three packages i)Design and Supply of Mechanical/Electrical Equipment and the required steel for structures, ii)Erection of steel structures and erection, testing & commissioning of Mechanical/Electrical equipment and Fabrication and iii) Entire associated civil works.

2. The first respondent herein was awarded a contract with reference to packages (i) and (ii) and the third package, viz., associated civil works, was given to another agency. The cost of the two contracts were of a value of US$ 137,51,525 + Rs.10,00,000/-and Rs.12,37,59,000/- respectively. Both these contracts were to be completed within a period of twenty four months from the date of issuance of the Letter of Intent. The Letter of Intent for the supply contract as