K.P. Balanarayana Marar, J.

1. Defendant in O. S.137/1981 before the Sub Judge, Ernakulam is the appellant. The suit was for determination of reasonable/fair prices for certain articles manufactured by plaintiff and supplied to the defendant as per an agreement of the year 1976. The claim is for the period from 1-9-1977 to 15-2-1980. Deducting the amount already paid, plaintiff claimed Rs 2,55, 253.86 with interest and costs. The lower court decreed the suit as prayed for reducing interest to 6% from the date of the suit Defendant appeals.

2. The need for setting up small scale ancillary industries was emphasised by the Government of India. Comprehensive guidelines were issued in 1971 to all public sector enterprises spelling out the steps to be taken to accelerate the growth of ancillary industries. To accelerate matters in public sector enterprises, the programme was entrusted to the Bureau of Public Enterprises. Additional guidelines were issued by the Bureau in 1978. The Hindustan Machine Tools Ltd. (for short HMT) Bangalore set up industrial estates and in Kerala the Kalamassery Unit of HMT established its own ancillary units numbering 12 initially invitations were calle