Specifications

4
failure, neglect or contravention capable of being made good within that time or
otherwise within such time as may be reasonably necessary for making it good then
and in such case the purchaser shall be at liberty to take the work wholly or partly out of
the hands of the supplier and recontract at reasonable price with any other person or
persons. In such an event, it shall be lawful for the purchaser to retain any such
balance which may otherwise be due by him to the supplier on any account including
the amount of Bank Guarantees and apply the same towards the execution of the
whole or balance of the work so recontracted, as aforesaid. If, no such balance is due
by the purchaser to the supplier or if due is not sufficient to cover the amount thus
recoverable from the supplier, it shall be lawful for the purchaser to recover the whole
or balance of the amount from the supplier by action of the law.
10. BANKRUPTCY
If the company shall commit any act of bankruptcy or being corporation commence to
be wound up except for reconstruction purpose, or carry on its business under a
receiver, the executors, successor or other representative in law of the estate of the
supplier or any such receiver, liquidator, or any person in whom the contract may
become vested shall forth-with give notice whereof in writing to the purchaser and shall
for one month during which company shall take all reasonable steps to prevent a
stoppage of the works, have the option of carrying out the contract subject to the
supplier, providing such guarantee as may be required by the purchaser but not
exceeding the value of the work for the time being remaining unexecuted. In the event
of stoppage of the work the period of the option under this clause shall be fourteen (14)
days only. Provided that should the above option not be exercised, the contract may
be determined by the purchaser by notice in writing to the supplier and the same power
and provisions reserved to the purchaser in the last proceeding clause of taking the
work out of the supplier's hands shall immediately become operative.
11. REPLACEMENT OF REJECTED MATERIAL
i) Material found damaged, substandard or defective or not conforming to the prescribed
specification in any manner, at the consignee's end, shall not be accepted and
intimation to this effect shall be given to the supplier and the purchasing office by the
consignee. The Purchasing Authority shall promptly take up the matter with
supplier/shall intimate the supplier to this effect and ask him to rectify or replace the
defective substandard material forthwith and in any case within 60 days from the date of
intimation or rejection of material, failing which the Board shall reserve right to get the
defect/damages rectified at the supplier's cost or to dispose off such material and adjust
the sale proceeds thereof, if any, against its claim on the supplier. All expenses
involved in the replacement by way of handling, transportation, storage etc. shall be on
supplier's account.
ii) In respect of the defective/substandard supplies the date on which such a supply is
replaced shall be reckoned as the effective date of delivery there against and the delay
shall be worked out accordingly with reference to the date on which the supply was due
as per terms of contract, for the purpose of determining penalties/charges recoverable
under clause-5 above.
iii) The provisions of sub clause (i) & (ii) above shall apply mutatis mutandis, to the material
found substandard or defective during the period of warranty.
12. WARRANTY
The supplier shall be responsible to replace free of cost, with no transportation or
Insurance cost to the purchaser up to the destination, the whole or any part of the
material which in normal and proper use proves defective in quality or workmanship,
subject to the condition that the defect is noticed within 60 months from the date, the
material is commissioned/put to use by the end user, or 66 months from the date of
dispatch whichever period may expire earlier. The consignee or any other officer of the
purchaser actually using the material will give prompt notice of each such defect to the
supplier as well as the purchasing authority. The replacement shall be effected by the
supplier within a reasonable time but not exceeding 60 days. The supplier shall also
arrange to remove the defective supply within a reasonable period but not exceeding 60
days from the date of issue of the notice in respect thereof, failing
which the purchasing authority shall reserve the right to dispose off the defective
material in any manner considered fit by it at the sole risk of the supplier. Any sales
proceeds of the defective material after meeting the expenses incurred on its custody,