Oil and Natural Gas Corporation Ltd. Vs. SAW Pipes Ltd. [Appeal (Civil) 7419 2001 of 518]

The Oil and Natural Gas Commission ordered Saw Pipes to supply off-shore exploration equipment to be procured from licensed European manufacturers. Delivery was postponed due to a general strike by steel mill employees in Europe. Timely delivery was at the core of the contracts. The ONGC granted an extension of time, but relied on the provision for the recovery of liquidated damage by withdrawing the sum from payment to the supplier. 

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