T.L.VENKATARAMA AIYAR, J.

(1) BOTH these appeals arise out of the same facts and involve the determination of the same question, and this judgment will govern both of them.

(2) THE appellant in Civil Appeal No. 237 of 1960 is a company registered at Recklinghausen near Dusseldorf in West Germany, and carries on business in the manufacture and erection of plants and machinery. On 19/12/1953, it entered into a contract with a company called Sinclair Fertilisers and Chemicals (Private) Ltd., hereinafter referred to as the Owner, for assembling and, installing machinery, plants and accessories for a coke oven battery and by-products plant at Sindri in the State of Bihar for an all-inclusive price of Rs. 2,31,50,000.00. The agreement provides that the appellants were to supply all the materials and labour required for the execution of the works, and that the performance was to be split up into two categories, the German section and the Indian section, that the German section was to consist of deliveries of materials from Germany Free on Board European ports, cost of technical drawings and services of German specialists, and that the Indian section was to consist of supply