T.A. Choudhary vs State Of A.P. And Ors. on 1 May, 2003
Even in Associated Engineer's case (supra), the Division Bench, apart from the other factual matters, observed that, inasmuch as, the Contractor had accepted the extension without making any protest or serving any notice that he would be entitled to claim the compensation. But, that situation is not present in the case on hand. The Contractor has specifically indicated his intention while accepting the extension. Further, another distinguishing feature that can be noticed in the case on hand is that the delay which is caused by the Department is a positive act of interference which totally disabled the Contractor from undertaking the work and completing the same within the time. What was claimed is neither the loss of profit nor the market rates, but since the extension was made at the instance of the Department on the ground that there were delays and defaults attributable to the Department and the value of the work done was claimed on the basis of the S.S.R. rates which were prevailing when the work was done beyond the period of agreement. Therefore, it cannot be said to be escalation of rate. But, it is only the S.S.R. rates which is notified by the Government during the particular year and what was claimed by the Contractor is the said rate and not the escalated rate namely the market rate. Thus, the judgment relied on by the learned Government Pleader has no application to the facts of the case.