Union Of India vs Chandalavada Gopalakrishna Murthy & ...

The Supreme Court held that under Clause 17(3) of the contract, if there is a delay caused by the Railway, the contractor is not entitled to damages or compensation, and the completion date may be extended. The Court reaffirmed the principle established in Ch. Ramalinga Reddy Vs. Superintending Engg. & Anr. (1999) and General Manager (Northern Railway) & Anr. Vs. Sarvesh Chopra (2002), which state that compensation cannot be awarded if the contract is extended as per its terms. The Court set aside the High Court's order allowing the claim for damages, thereby allowing the appeals.