FOOD CORPORATION OF INDIA vs VIKAS MAJDOOR KAMDAR SAHKARI MANDLI LTD.

The Supreme Court upheld the Gujarat High Court's decision to partly decree the respondent's suit for recovery of Rs.68,02,973/- under the provisions of the contract, emphasizing the need for the Food Corporation of India to adhere to contractual obligations regarding payment for extra work. The Court clarified that the respondent was entitled to enhanced rates due to the increased cargo handling beyond the contracted amount, thus establishing that parties must honor contractual terms and conditions. The judgment reinforced the principle that contractual obligations must be fulfilled in good faith, leading to the affirmation of the lower court's ruling.