Law:

Section:

Specific Relief Act (I of 1877)-------Ss. 21, 42 & 54---Contract not specifically enforceable---Suit for declaration and injunction---Plaintiff by relying upon the "letter of intent" contended that since the defendant had failed to exercise its right in negative on or before the specified date, the option by the defendant would be deemed to have been exercised in favour of the plaintiff as a result of which the contract could only be awarded to him; that in the inter-departmental correspondence/exchanges of the defendant it had recommended that the contract in question be awarded to the plaintiff; that in view of the contents of letters exchanged between the parties the contract stood offered and accepted between the parties and the defendant was bound to award the contract to the plaintiff and that in the last tenders, the plaintiff had offered the lowest bid and therefore, he was entitled to the award of the contract---Validity---Held, exercise of the right of option to award the contract in question rested with the defendant unconditionally and the plaintiff had no tight to compel the defendant to exercise the same in his favour; the contention of the plaintiff that since the defendant had failed to exercise its right in negative the defendant would be deemed to have exercised the option in favour of the plaintiff was not sustainable as the wording of the clause of the letter of intent itself was very clear and the proposition suggested on behalf of the plaintiff could not be read into the same ---Inter­departmental correspondence/exchanges of correspondence were the part of the normal course of business and in that a number of suggestions and recommendations were made by one department and rejected by the other and unless those were officially .communicated and forwarded the same were of no help to the plaintiff---If such correspondence/recommendations of the departments were made binding on the departments by the outsiders the entire working of inter-department exchanges/correspondence would come, to a stand still and the departments would not reduce any suggestion or recommendation in writing fearing that the same would be made binding upon them by…

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