( 1 ) R. F. A. No. 14/1978 is filed by the plaintiff and R. F. A. No. 48/1976 is filed by the defendants. In this judgment, the parties will be referred to with reference to the position assigned to them in the trial court. As both the appeals arise out of the same suit, they are disposed of by this common judgment.

( 2 ) O. S. No. 94/1972 was filed by the plaintiff for recovery of a sum of Rs. 48,409-06 being the amount due towards the work contract entrusted to it under ex. P. 10. The case of the plaintiff is that the defendants illegally terminated the contract and illegally forfeited the earnest money deposit and also failed to pay the amount towards the work done under the contract Ex. P. 10. Therefore, under all the heads together, the plaintiff prayed for a decree for recovery of the aforesaid sum.

( 3 ) THE defendants disputed the claim made by the plaintiff and contended that the contract was terminated in accordance with the provisions contained therein ; that the plaintiff failed to perform the contract within the time stipulated in the contract ; therefore the work was got done through the department and as well as by the other contractor. The defendants