#Price Escalation

Karnataka High Court rules that contractors cannot claim price escalation post-tender rejection, even if work commenced, as oral assurances are unenforceable against written tender conditions. The judgment reinforces that public procurement contracts must strictly adhere to their explicit terms, protecting government entities from unintended financial liabilities.

Karnataka HC dismisses a contractor’s price escalation claim, ruling that promissory estoppel does not apply without a clear, binding promise beyond the contract’s terms. The court upheld rescission due to breach and denied relief for unproven losses, reinforcing strict adherence to contractual clauses in public procurement disputes.

Bombay High Court holds that parties cannot invoke no-escalation clauses to avoid liability when their own breach causes delay and additional costs to the contractor.