( 1 ) THE plaintiff filed a suit against the defendant for recovery of a sum of Rs. 2 lacs, with the averments that plaintiff-company intended to install a Straw board Mill at Alwar and for that purpose, it entered into correspondence with the defendant and ultimately the parties entered into a contract on 17 October, 1974. The plaintiff incorporated the terms and conditions of the contract in a letter and handed it over to the defendant. Pursuant to the contract the plaintiff, at the first instance, paid Rs. One lac to the defendant through bank draft dated 6-11-1974. The plaintiff further paid rs. One lac in two installments of Rs. 50. 000/- each through bank drafts dated 1-7-1975 and 2-9-1975. In all, the plaintiff paid Rs. 2 lacs to the defendant as an advance against the cost of plaint. As per the contract, the defendant-company was required to supply machinery within 14 months and/or at the maximum, within 15 months from the date of contract. It is averred that despite repeated requests, the defendant-company did not manufacture the machines. Ultimately, the plaintiff had no option but to terminate the contract and got served a notice dated 8th January, 1979 on the de