Introduction:
In one of its most recent judgments, in the case
of Padia Timber Company (P) Ltd. Vs The Board of
Trustees of Visakhapatnam Port Trust Through its
Secretary1, the Hon'ble Supreme Court
considered the issue of regarding formation of the contract between
the parties, which was the bone of contention between the parties.
The Hon'ble Apex Court found that neither the trial court nor
the high court had considered this crucial issue, while deciding
the case.
Factual Matrix:
The Respondent floated the tender for supply of Wooden Sleepers
in July 1990. Clauses 15 and 16 of the tender read as under:
“15. The purchaser will not pay separately for transit
insurance and the supplier will be responsible till the entire
stores contracted for arrive in good condition at destination. The
consignee will as soon as but not later than 30 days of the date of
arrival of stores at destination notify the supplier of any loss,
or damage to the stores that may have
