JUDGMENT - B.N. SRIKRISHNA, J.:---Appeals admitted. Notice made returnable forthwith. Respondents waive service. By consent, appeals called out and heard.

2. These two appeals are inter-connected and can be conveniently heard and disposed of by the same judgment.

3. Appellant company owned certain premises in Mittal Court at Nariman Point, Mumbai, called "business centre", use of which was made available to the respondent by the agreement dated 27th June, 1994. One of the Clauses of this agreement stipulated that the respondent was to place interest free deposit of Rs. 25,00,000/- with the appellant for due performance of the agreement by the respondent. The deposit was to continue in the hands of the appellants "till the client performs the terms of the agreement as above", the client being the respondent and the deposit was to bear no interest at any time whatsoever.

4. The respondent gave notice of prematurely surrendering its rights under the agreement, return of the facilities, including the premises, which they were allowed to use under the agreement and they also asked for return of the deposit of Rs. 25,00,000/-.

5. There is dispute between the parties as to whether the pre

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