1. Legality of the levy of liquidated damages, on delay in execution of contract work, is the core issue for consideration in this appeal.

2. The Cochin Port Trust (hereinafter referred to as ''the respondent'') invited global tenders for fabrication, supply, erection and commissioning of two cranes at the wharf at Ernakulam. The tender submitted by M/s.Cimmco Birla Limited (hereinafter referred to as ''the claimant'') was the lowest and it was accepted. The order for the first crane was placed on 06.06.1994 and the order for the second crane was placed on 09.09.1994. As per the terms of the contract entered into between the claimant and the respondent, the work had to be completed and the commissioning of the first crane had to be done on or before the date 05.06.1995 and the s