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M/S.Simplex Infrastructure Limited vs Tamil Nadu Generation And Distribution on 25 October, 2025
cites
The Code of Civil Procedure, 1908
Section 2 in The Code of Civil Procedure, 1908 [Entire Act]
Section 62 in The Indian Contract Act, 1872 [Entire Act]
The Minimum Wages Act, 1948
Section 1 in The Indian Contract Act, 1872 [Entire Act]
P.M. Paul vs Union Of India on 16 January, 1989
(d) For variations exceeding these limits, separate
rates will be negotiated. It shall be specifically noted that
TNEB shall not pay any increase in rates over those accepted
herein for the delay in completion of works under any
circumstances.”
Thus, except with regard to a variation of not less than 25% in the total contract
value, parties agreed that the prices would remain firm until completion of
work, including during extended periods. While escalation may be granted
when the contract is silent (P.M. Paul v. Union of India 1989 Supp (1) SCC
The Assam State Electricity Board ... vs Buildworth Pvt. Ltd. Represented By Its ... on 4 July, 2017
368), it cannot be granted when there is an unequivocal prohibition even in the
extended period. Because of the nature of the clause, therefore, even the
judgment of the Supreme Court in Assam State Electricity Board and others v.
Buildworth (P) Ltd. (2017) 8 SCC 146 does not come to the aid of the plaintiff.
By taking note of these contractual clauses, the escalation claim is rejected.
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