M.S.J. (Engineers) & Co. Pvt. Ltd. vs Union Of India And Others on 1 January, 1800
10. As rightly pointed out by GIL, if the work was not delayed GIL
would have paid rent only for 18 months. With this DDA having granted
licence for all the sections without compensation (except one specific
period for Noida flyover where it levied compensation), the inevitable
conclusion was that the delay was not attributable to GIL. At the time of
bidding, GIL had considered the land rent for the period of contract. The
excess rent payable for the period beyond the stipulated period was,
OMP Nos 6/2009 & 674/2008 Page 4 of 13
therefore, liable to be refunded to GIL. This aspect of the matter seems to
be completely overlooked by the learned Arbitrator. The recovery made
from GIL was, therefore, clearly excessive. GIL was right in its
contention that EoT is not a substitute for the right to cost compensation.
This was explained by this Court in M.S.J. (Engineers) & Company
Private Limited v. Union of India 60 (1995) DLT 705 wherein a
reference was made to Hudson's Building and Engineering Contracts
(9th Edition, p.492) which set out the principles as follows: