B. D. Agarwal J. - These connected appeals arise against the orders passed by the II Civil Judge, Kanpur, dated January 24, 1984 and February 4, 1984, in Originals Suit No. 775 of 1983.

The respondent No. 1 is a registered Company engaged in the manufacture of mild steel ingots at Unnao. On December 15, 1982, there was an agreement in writing entered into between the respondents and the appellants for the purpose of iron scrap required as raw-material to manufacture the ingots. The agreement is signed by the Controller of Stores, N.E. Railway, Gorakhpur, for and on behalf of the President of India. In terms of the agreement the respondent was to take delivery of the goods from the appellants on being intimated of the same and upon failure to take delivery the contract was liable to be cancelled and the security forfeited. On December 11, 1982, the respondent 2 (Grindlays Bank) furnished guarantee for a sum Rs. 2,45,680/- on behalf of the respondent 1. The validity period of the agreement is December 15, 1982 to December 14, 1983. The Controller of Stores, N.E. Railway Gorakhpur, wrote to the respondent 2 on December 8, 1983, intimating that the respondent 1 having failed t