Judgment

BHAGWATI, J.:- These appeals raise an interesting question relating to the interpretation of Cl. 18 of the General Conditions of Contract contained in the Standard Form of Contract No. D.G.S. & D. 68. That is the standard form in which contracts are entered into by the Central Purchase Organization of the Government of India for purchase of stores from third parties described as contractors and the question of interpretation which arises for determination is, therefore, one of some importance, affecting as it does a large number of people who enter into such contracts with the Government of India. The facts giving rise to these appeals follow a common pattern and it would, therefore, be sufficient if we set out the facts relating to Civil Appeals Nos. 1224 and 1225 of 1973. They bring out clearly the point which arises for consideration in all the three appeals.

2. The respondent tendered for supply of certain quantity of foam compound to the appellant and its tender was accepted by the appellant by Acceptance of Tender dated 16th July, 1968. The Acceptance of Tender was subject to the General Condition of Contract contained in the Standard Form of Contract No. D.G.S. & D.