1. The defendant in O.S. 767 of 1973 on the file of the District Munsif of Arni, is the appellant in this second appeal. The plaintiff in the suit is the respondent herein. The plaintiff which is a Municipality, conducted auctions of leases of two bunks. In the auction, the defendant participated and he was the highest bidder for the first bunk for Rs. 3,210 and for the second bunk for Rs. 3,050. It is admitted that there was a second highest bidder, who has bid for the first bunk for Rs. 3,200 and for the second bunk for Rs. 3,010, The highest bids of the defendant were confirmed by the plaintiff, but since the defendant did not pay the advance of three months kists per condition 14 of the Conditions of Auctions, in spite of repeated demand, the leases in his favour of the two bunks were cancelled and the bunks were re-auctioned at the risk of the defendant and on such re-auction, the first bunk fetched only a sum of Rs. 550 and the second bunk fetched only a sum of Rs. 520. The plaintiff laid the suit for recovery of damages as the difference between the bids of the defendant and the bids at the second auction, deducting the earnest money of Rs. 200 already paid by the