( 1 ) THE State of Gujarat, appellant, original defendant, has filed this appeal under Section 96 of the Code of Civil Procedure, 1908 against judgement and decree dated 4. 5. 1991 passed by the Civil Judge (S. D.), Anand, in Civil Suit No. 22 of 1985 filed by M/s. Kothari and Associates, original plaintiff. The learned Judge by his impugned judgement was pleased to partly decree the suit of the plaintiff. The learned Judge was pleased to direct that the defendants do pay to the plaintiff Rs. 13,61,574. 00 (Rupees thirteen lakh sixty one thousand five hundred seventy four) together with interest on the said amount at the rate of 12% per annum from 7. 8. 1983 till realisation of decretal amount.

( 2 ) THE facts giving rise to this appeal are as under:2. 1 m/s. Kothari and Associates, original plaintiff (hereinafter referred to as "the plaintiff") is a registered partnership firm carrying on the business of Engineers and Contractors. The Executive Engineer, Anand, Irrigation Division, Anand, invited tenders publicly for the work of providing lining to main canal mile 36 to 46 between 36 M and 41. 2 M Section I. The plaintiff submitted the tender form for the same. The