V. P. Bhatnagar, J.—The allegations, made in the plaint, which are not disputed by the defendants, may be narrated at the outset.

2. Three different lots of dry, up-rooted and fallen chil (pine) trees were nut to auction at Bhadroya by the Forest Department, Government of Himachal Pradesh, in October, 1979. The plaintiff-firm gave highest bids amounting to Rs. 23, 98, 000 for these lots. The bids were accepted and three lease deeds Exs. D-35, D-36 and D-38 were executed. The plaintiff also agreed to pay sales tax on auction amount, which is termed as royalty, and surcharge which is 10 per cent of the sales tax. The amounts of royalty and tax were payable in installments indicated in the lease deeds referred to above. The work of felling the trees and extracting timber there from was to be completed within a fixed time. The plaintiff represented for extension of this period on which the Conservator of Forests, Bilaspur allowed extension upto September 25, 1980. Further extension in the period of contract, though applied for, was not allowed. The plaintiff also failed to deposit the amount of instalments according to the w schedule with the result that the Forest Department co