1. Defendant in O.S.No.6949/1991 on the file of the Additional City Civil Judge, Bangalore, has come up in first appeal impugning the Judgment and Decree dated 18.08.2003 passed in the said case.

2. Brief facts leading to this appeal are as under: Appellant herein is defendant and respondent is plaintiff in O.S.No.6949/1991, which was filed for recovery of amount due in a sum of Rs.13,93,226/- together with interest at 18% p.a., from the date of the suit till realisation on the ground that the said amount is due from the defendant on account of construction of factory by the plaintiff for and on behalf of defendant - Society at the place of its work in Saundatti, Belgaum District.

3. The facts which are not in dispute are that the defendant - Society decided to get the building constructed within the premises of its factory and in that behalf a tender was called. Plaintiff tendered its offer to take up the construction work on 24.4.1986. Subsequently, after mutual discussion between the parties the said tender was accepted and the work was awarded to plaintiff in terms of letter dated 8.7.1986. The nominal value of the work was estimated at Rs. 1,65,40,000/-. In that behalf, an a