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09. The petitioner then responded to the notice vide communication dated 25.01.2019, indicating the reasons for non-completion of work. All the allegations made and explanations tendered by the petitioner in its communication dated 25.01.2019 were replied to by the respondents in their communication dated 25.02.2019.

Response by Union of India

10. In regard to the allegation that numerous changes were made in the scope of work which led to delay in the execution of the contract, the Garrison Engineer denied the same by alleging the delay in the slow progress of work due to poor site management and lack of resources including material, labour, T&B. The petitioner was also informed that the changes were inevitable due to technical reasons, the requirement at the site and the interest of work to meet the functional requirement of the hospital project and amenities to be provided therein. It was however clarified that the changes were minimum and pertained to change in goods and material quality necessitated on account of upgradation and technology. The availability of material as also from the point of view of aesthetics.

34. It was further urged that merely because extension was granted by invoking Clause 11(A)(vii) would not mean that the contractor- petitioner herein was not guilty of gross delay in execution of contract. Attention of the Court was drawn to various communications and minutes recorded of meetings held between the officers of the respondents as also the petitioner, wherein the slow progress of work was admitted from time to time.
35. A meeting appears to have been held on 20.12.2016 to assess the state of work being executed on the spot, which was attended inter alia by Mr. Pancham Singh, Chairman of the petitioner Company along with respondent No. 3. In the meeting, minutes whereof are on record, it appears that the Chief Engineer expressed his unhappiness on the slow progress of work, despite commitments made by the contractor in its earlier meeting.
36. It was noted that the progress of work, which was required to be achieved was @ 5 % per month, as against the average progress achieved for the last six months @ 0.4 % per month. The labour deployed was also recorded to be much less than the required to achieve the progress. The Chairman of the firm reportedly accepted the slow progress of work on their part and reaffirmed their committment to complete the work by 31.10.2017. For purposes of reference, minutes of the meeting recorded on 20.12.2016 are reproduced hereinbelow:-

(b) The Chairman of the firm accepted the slow progress of work in their part and reaffirmed their commitment to complete the work by 31 Oct 17. Further he brought out the reasons of slow progress is mainly due to cash flow problem of firm, incorrect quoting etc. He mentioned that the situation now got more difficult due to demonetization as only Rs.