( 1 ) THE Indian Sugar Industries Export Corporation Limited (hereinafter referred to as the Corporation) was required to arrange transport of 6260 metric tons of sugar as handling agents for State Trading Corporation lor five different factories situated in the State of Gujarat. The Corporation entered into a contract to execute the job with M/s Nagori and Company, Shivaji Cross Road, Shirampur, District Ahmednagar, Maharashtra (hereinafter referred to as the Company ). It was agreed that a consideration of Rs. 891- per metric ton will be paid to the Company. Under the said agreement, the transportation had to be completed by 20th of February 1981. The Company lifted 1668. 6 M. T. of sugar from the factories and delivered 1558. 6 M. T. at the Bombay Port by the stipulated date. Other 1100 bags though removed from Chalthan Factory were not carried to the destination but were stored at the godowns of the transporters engaged by the Company. Though the stipulated time expired, the Company failed lo fulfil its commitment. The Corporation, therefore, extended the time upto 29th March 1981 and urged the Company to complete the job by that time. The Company failed to