In Brief
A contractor successfully tendered for a government water supply scheme work. The respondent board issued a work order but later kept it in abeyance, then requested modified pipe specifications and additional work without finalizing rates, and failed to pay bills due to fund shortage. The contractor refused to continue without clarification. The Trial Court awarded Rs. 24.97 lakh; the High Court reduced it to Rs. 7.19 lakh, finding abandonment. The Supreme Court held this was error. Modifying contract terms and non-payment of bills excuse non-performance under contract law; this is breach, not abandonment. The appellant is entitled to the full Trial Court award. Appeal allowed.
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