Tarkeshwar Nath, J.

1. This appeal by the State of Bihar (defendant) arises out of a suit for recovery of Rs. 98528/- as principal and Rs. 17241/14/- as interest from August 1953 to June 1956 at the rate of 6 per cent per annum.

2. Plaintiff was a partnership firm carrying on coziness at various places including Sindri. There is a factory at Sindri for manufacture of fertilizers and it is known as Sindri fertilizer Factory. By a notice dated 13-8-1946, the Government of Bihar through the Executive Engineer, Sindri Water Works Division of the Public Health Engineering Department invited tenders from contractors desiring to execute the works for settling tank and ancillary works for water supply to the Fertilizer Factory at Sindri, me plaintiff submitted tender for the said works and that tender was accepted by the Government of Bihar. By an indenture of agreement dated 1/23rd April, 1947, between the plaintiff and Governor of Bihar the latter appointed the plaintiff as contractor for the purpose of executing the works of settling tank and ancillary works at Sindri on terms and conditions mentioned therein. The Superintending Engineer Public Health Department, executed that a