N. Y. HANUMANTHAPPA, J.

( 1 ) AGGRIEVED by the judgment and decree dated 3-4-1996 made in OS No. 11 of 1992 by the learned Subordinate Judge, Nandyal, allowing the suit claim in part, AS No. 2206 of 1996 has been filed the defendants-State. AS No. 236 of 1998 has been filed by the plaintiff aggrieved by the judgment and decree dated 3-4-1996 passed by the Subordinate Judge, Nandyal in OS No. 11 of 1992 dismissing the suit against certain claims. Hence, both the appeals are clubbed together and disposed of by this common judgment. The rank of the parties is reported as in the trial Court.

( 2 ) THOUGH facts of the case relating to the suit claim arise on a complex plane and are many, only the relevant facts which are necessary for the disposal of the appeal may be narrated thus :

( 3 ) THE plaintiff-M/s. Pioneer Builders, Engineers and Contractors, Hyderabad, had entered into an Agreement with the 2nd defendant viz. , Superintending Engineer, Srisailam Right Branch Canal (SRBC) Circle No. 1, Nandyal, vide agreement No. 25/se/88-89, dated 19-2-1989 to execute the work pertaining to earth work excavation, lining and construction of structures of SRBC from MM, 30. 000/34. 486 to K. M. 3