This appeal is directed against the judgment and decree dated 28.12.1998 in OS No.2154 of 1989 on the file of I Senior Civil Judge, City Civil Courts, Hyderabad, wherein the suit filed by the appellant for recovery of a sum of Rs.1, 99,981.08 was dismissed.

2. The appellant herein filed suit against the respondent-defendant with the following averments:

The plaintiff is a statutory Corporation and Central Government undertaking, dealing in grains and other essential commodities. The defendant is a partnership firm doing business in rice in Thondangi of East Godavari district. The defendant submitted tender for purchase of rice stocks put up for sale by the plaintiff after inspecting the goods. The plaintiff accepted the rates at Rs.192/- to Rs.202/- per quintal offered by the defendant i.e., for lot No.1 at Vizag for quantity of 151.4 metric tons at Rs.192/- per quintal, for lot No.2 at Vizag for 99.3 metric tons at Rs.192/- and for lot No.3 at Tadepalligudem for 65.1 metric tons at the rate of Rs.191.50. The plaintiff communicated the acceptance of the above rates by letter dated 7.1.1987 which was received by the defendant under their acknowledgment dated 10.1.1987. As