KUMARAYYA, J. :- It is intended by this Judgment to dispose of both the appeals Nos. 121 and 99 of 1954 arising out of a single judgment dated 10-7-1954 passed by the District Judge, Secunderabad. Appeal No. 99/1954 is filed by the plaintiff, Vishram Arjun, against the dismissal of his suit and appeal No. 121/ 1954 is preferred by the defendants, Yerakula Shankarayya, timber merchant of Warrangal and Muhamed Mohasin Khan, timber merchant of Chinnur against the dismissal of their counter-claims.

2. The facts of the case are simple and for the most part undisputed. It would appear from the pleadings that P. W. Department undertook Kadam Canal Project which was to run through some of the forest area in Adilabad District. The site of the canal and certain portion (space) on either side of it had therefore to be first cleared. Vishram Arjun, a contractor was given the contract of clearing the portions between miles 26 to 30 in August 1949. Ex. D-34 dated 30-8-1950 is the agreement between Vishram Arjun and the Forest Department and it embodies all the terms to which the contract of sale was subjected.

The forest produce which formed the subject matter of the agreement comprised t