Krishna Ballabh Sinha, J. - This appeal arises out of the money suit filed by the plaintiff-respondent against the defendant-appellant for realisation of amount due for the work done under a contract.

2. The appellant-defendant is a Limited Company with its head office at Ranchi and having a Steel Project at Rourkela. The Plaintiff-respondent is a contractor and claims to be engaged in contract business since the year 1955.

3. The appellant issued notice on 29.5.1962 inviting quotations (tender) regarding Breaking and Loading of Slags and all Dobris produced in Steel Melting Shop and Transporting and Unloading the same from one place to the other within the plant area. The plaintiff-respondent submitted his tender on 5.5.62 with a demand draft of Rs. 15,000/- as earnest money. The offer made by the respondent, being the lowest, was accepted by the appellant and first he was verbally asked to make arrangement to start his work with effect from 26.6.1962. In pursuance of the said verbal order, the respondent started his work from 27.6.62. Subsequently a written order was given to him on 17/18.8.1961 by the appellant directing him to execute an agreement and accordingly an agree