Judgment

GROVER, J.:- This is an appeal by special leave from a judgment of the Mysore High Court in suit filed by the State of Mysore against the present appellant for recovery of Rs. 40,000/- together with interest on account of the breach of the terms of bond dated July 2, 1947 by virtue of which the appellant received certain amounts by way of scholarship and expenses for studies abroad.

2. The facts may be shortly stated. On September 11, 1946 the appellant applied to the State Government for an overseas scholarship and the same was sanctioned in his favour. The appellant was required to execute a bond which he did on July 2, 1947 . In the bond (Ext.. 5) it was stated inter alia that the scholar had to accept and be bound by all the conditions specified in the rules contained in the annexure to the Government proceedings mentioned therein. Clauses 3 & 4 are reproduced below:

"3. That on the completion of such study or research course, the scholar shall return to the Mysore State, and if and when called upon to do so, serve the Government for a period of not less than five years, on such salary as Government may, in their sole discretion fix, provided that, if within six months after his return to Bangalore, Mysore State, Government do not find employment for him they shall be deemed to have waived their right to claim his services as aforesaid and the scholar shall, thereafter, be at liberty to seek employment elsewhere. .

"4. That in case the scholar fails to fulfil any of the first two conditions herein set forth or specified in the aforesaid rules he shall refund to Government the amounts received by him as scholarship, passage money and all other amounts that may be advanced to him upto the date of his return to the Mysore State in connection with the aforesaid course of study or research with such interest not exceeding 5 per cent per annum as Government may, at their option, fix and demand. But if he fails to fulfil the third condition, viz., joining duty under and serving the Government for a period of five years, after the completion of the terms of scholarship or deputation he shall pay on the aggregate amount to be refunded as aforesaid, enhanced interest at 9 per cent per annum, instead of 5 per cent as mentioned above and a penalty of not less than one year s salary for each period of deputation (strike off the latter condition in the case of scholarship holders).

After completing the formalities the appellant left for U.S.A. He joined the Polytechnic Institute of Brooklyn, New York in September 1949 for obtaining the diploma from that Institute in Electrical Engineering. On July 25, 1949 by a letter, the Education Secretary, Embassy of India in U.S.A. wrote to the Chief Secretary, Government of Mysore conveying the request of the appellant that he be permitted to stay on for practical training with the General Electric Company for one year at his own expense beyond September 30, 1949. The Education Secretary supported this request with the comments that the training would be very valuable, the General Electric Company being well known. This request was duly granted by means of a cable Ext. P. 9 which was followed by a letter from the Secretary to the Government of Mysore, Education Department, Bangalore intimating that the appellant had been permitted to undergo practical training for one year from September 30, 1949 at his own expense.

3. The appellant completed his studies at the Polytechnic Institute of Brooklyn, New York in September 1949 and obtained the diploma from that Institute on June 14, 1950. On July 6, 1950 he returned to Bengalore and wrote a letter dated July 18, 1950 to the Government of Mysore saying that he had returned from the United States after the completion of his studies there. On November 29, 1950 the appellant addressed a letter to the Mysore Government saying that he be permitted to return to the United states to complete his training which he had interrupted on account of the news of