In the matter of contracts, whether executed between two private
parties or between the parties one of which is a government entity,
the terms of the contract bind the parties. The status of the
parties and/or their dominance, if any, has no role in the matter
of enforcement and implementation of the contract clauses. It is,
however, seen that when the contract is executed between the
government entity on one hand and the private party on the other,
government officials at time act adopting interpretation of the
terms of contract, not warranted by express language use therein.
In some cases, during execution of the contract, attempts are made
to impose additional conditions, which are contrary to the express
terms, to avoid the possibility of claims being made by the
contractor on a future date. To what an extent, such exercise of
power by one of the parties to the contract, is permissible has
been examined by the Hon'ble Supreme Court of India in the
case of State of
