In case the contractor/supplier fails to deliver the stores/material or any consignment thereof within the contracted period of delivery or in case the stores/materials are found not in accordance with the prescribed specification and the approved samples, the Board shall exercise in discretionary power either,

(a)    to purchase from elsewhere, after giving due notice to the contractor, at the risk of contractor, such stores/material not so delivered or other of similar description, without canceling the contract in respect of consignment not yet due for delivery,

OR

(b) to cancel the contract reserving Board’s right to recover damages, notwithstanding that the powers under (a) and (b) referred above are in addition to the rights and remedy available to the Board under the General Law of India relating to contract.

NOTES:

(i) In the event of risk purchase of stores of similar description, the option of the Board shall be final. In the event of action taken under (a) or (b) above, the supplier shall be liable for any loss which the Board may sustain on that account but the supplier shall not be entitled to any saving on such purchases made against default.

(ii)    The decision of the board shall be final as regards the acceptability of the stores supplied by the supplier and the Board shall not be required to give any reason in writing or otherwise at any time for the rejection of the stores/materials.