JUDGMENT

SARKARIA, J.:—This is a defendant s appeal directed against a judgment and decree of the Mysore High Court.

2. On September 16, 1949, the plaintiff, K. H. Rao, entered into an agreement (Ex. D-2) with the defendant (Union of India) through its Military Head Quarter, Madras Area, contracting to supply onions for the period. October 1, 1949 to March 31, 1950, at the supply depots of the defendants in Bangalore, Cochin, Coimbatore and Wellington, at the rates mentioned in the Schedule to the agreement. The supply was to be made in such quantities as may be required from time to time by the defendant, not exceeding lbs. 45,000 a month for the Bangalore, Depot lbs. 3,000 for the Coimbatore Depot, lbs. 5,000 for the Wellington Depot and lbs. 5,000 for the Cochin Depot. Under the agreement, there was a security deposit of Rs.4,300 made by the defendant. This deposit was liable to forfeiture only in the event of any breach or non-performance of the contract by the plaintiff. Clause (7) of the agreement provided that if there was failure on the part of the plaintiff to perform the contract, the defendant was at liberty to make purchases of the onions elsewhere at the risk of the pla