S. Sankarasubban, J.

This appeal is filed by the defendant in O.S. No. 156 of 1988 on the file of the Additional Sub Court, Ernakulam. The suit was filed by the present respondent. The respondent had entered into a contract with the appellant for the work of fabrication, erection, testing and calibration of roof storage tanks at Cochin Refineries Ltd. The suit was filed on the ground that even though the respondent completed the work as per the terms of the contract, the appellant had illegally recovered a sum of Rs. 1,86,548.12 as liquidated damages from the final bill amount due to the plaintiff. The respondent/ plaintiff sought for a declaration that the appellant is not entitled to levy any liquidated damages on account of the performance of the contract on the ground that there was no breach of contract on his part. The plaintiff also claimed for recovery of certain amounts, which were withheld by the appellant, on various heads like shortage in stock, cost of diesel, etc. The total claim comes to Rs. 1,06,600 under the different claims.

2. The appellant/ defendant filed a written statement and contended that as per the agreement between the parties, time was the ess