P. C. MISRA, J.

( 1 ) THIS appeal arises out of suit for recovery of a sum of Rs. 27,718,73 paise with costs and interest. Defendant No. 1 is the appellant in this appeal,

( 2 ) THE plaintiff's case in brief is that it is a registered co-operative society sponsored by the Government of Orissa. Its business headquarters is at Parlakhemundi. It carries on business in varieties of goods and also undertakes the distribution work of Government goods. The Government of Orissa sponsored a scheme to supply chsmical fertilisers to the farmers through the Orissa State Cooperative Marketing Society Limited, known as "the Apex Society, Regional Marketing Societies and Primary Societies constituted in the rural areas to cater to the needs of the farmer Rules were framed by Government for easy and, smooth distribution of the goods under the control and direction of the Director of Agriculture who has been impleaded in the suit as the second defendant. Government used to release their stork of chemical fertilisers in favour of the Apex Society and the latter used of distribute the stock among the Regional Marketing Societies for the purpose of stocking the same temporarily in their respective go