Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Contract: Invitation of tender for hiring of equipments |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Contract: Invitation of tender for hiring of equipments and machine for excavation and drilling work – Respondent was successful bidder – Issuance of Letter of Intent (LOI) – In terms of LOI, the respondent was to mobilize equipment for executing the work; Respondent was called upon to deposit Performance Security Deposit for a sum total of 5% of annualized contract amount within 28 days from the date of receipt of the LOI; sign the Integrity Pact before entering into the agreement in accordance with the tender document – Respondent mobilized resources at site and appellant issued letter of site handover – Respondent faced difficulties soon thereafter as the truck mounted drill machine suffered a major breakdown – Respondent wrote to appellant that the purchase of machine was expected only after about three months – Appellant issued letter alleging breach of contract – Held: Clause 29.2 of NIT clearly stipulates that the notification of award will constitute the formation of the contract “subject only” to furnishing of the Performance Security/Security Deposit – Thus, it was clearly put as a pre-condition and that too to be done within 28 days following notification of the award – The respondent, neither submitted the Performance Security Deposit nor signed the Integrity Pact – Consequently, the work order was also not issued nor was the contract executed – Therefore, it cannot be said that a concluded contract had been arrived at inter se the parties – Thus, case for breach of contract not made out. |
Judge | Hon'ble Mr. Justice Sanjay Kishan Kaul |
Neutral Citation | 2021 INSC 350 |
Petitioner | South Eastern Coalfields Ltd. & Ors. |
Respondent | M/s. S. Kumar’s Associates Akm (jv) |
SCR | [2021] 8 S.C.R. 8 |
Judgement Date | 2021-07-23 |
Case Number | 4358 |
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