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1. We gave our conclusions in our earlier Order dated 27th August 1991 reserving the reasons to be given later. Accordingly, we render our reasons in the present judgment.

2. We feel that a prefatory note, though not the detailed facts of the case, is necessary for disposal of these appeals and writ petition. The facts culled out from various documents placed before this Court are as follows:

3. The Ministry of Defence, Government of India approved in August 1980 a proposal forwarded by Army Headquarters (HQ) recommending, inter-alia, the introduction of 155 mm calibre medium gun both towed and self-propelled to meet its defence operational requirements. The choice for obtaining the said gun system/guns was short listed in December, 1982 to (1) M/s. Sofma of France (2) M/s. A.B. Before of Sweden (briefly called 'Before') (3) M/s. International Military Services of U.K. and (4) M/s. Voest Alpine of Austria. In November 1985, there was a further short listing of Sofma and Before. Finally, the order was placed by the Government of India with Before on 24th March 1986 for the supply of 410 numbers (400 plus 10 free) of 155 mm Field Howitzer 77-B gun system/spare guns vide contract No. 6(9)/84/D (GS-IV) for a total amount of SEK 8410.66 million (Swedish Kroners) (equivalent to about Rs. 1437.72 crores or Rs. 14377.2 million). The related contract for supplying the gun package (towed) and other related agreements/contracts were concluded and signed on 24th March 1986 with M/s. A.B. Before.