( 1 ) THE present suit is filed by the plaintiffs for the recovery of a sum of Rs. 3,08,650/- with interest on Rs. 1,75,256/ -. The claim in the present case arises in the background of following facts.

( 2 ) THE plaintiffs are a company and are inter alia carrying on business of supply of various machineries. It is the case of the plaintiffs that sometime in or about 20-1-1975 the defendant issued a tender notice and pursuant to the said tender notice the plaintiffs submitted an offer for supply of 2 numbers design, manufacture and supply of 70 ton capacity Hoist having 12 metres lift conforming to the defendant's technical specifications for the price of Rs. 4,22,370/ -. The said offer was given by the plaintiffs on 11-2-1975 to the defendant. According to the plaintiffs, under the terms and conditions of the said offer it was inter alia pointed out that the payment in respect of the said supply would as under :- 15% of the total price was to be paid to the plaintiff as advance against submission of the bank guarantee. 10% of the ordered value was to be paid to the plaintiff on the defendant's approval of the drawings and in any case not later than 45 days from the date o