Judgment

SHAH, AG. C. J.: Maula Bux - hereinafter called the plaintiff - entered into a contract No. C/74 with the Government of India on February 20, 1947, to supply potatoes at the Military Headquarters, U. P. Area, and deposited an amount of Rs. 10,000 as security for due performance of the contract. He entered into another contract with Government of India on March 4, 1947 No. C/120 to supply at the same place poultry, eggs and fish for one year and deposited an amount of Rs. 8,500 for due performance of the contract. Clause 8 of the contract ran as follows:

"The officer sanctioning the contract may rescind his contract by notice to me/us in writing:

(i) * * *

(ii) * * * *

(iii) * * *

(iv) If I/we decline, neglect or delay to comply with any demand or requisition or in any other way fail to perform or observe any condition of the contract.

(v) * * * *

(vi) * * *

In case of such rescission, my/our security deposit (or such portion thereof as the officer sanctioning the contract shall consider fit or adequate) shall stand forfeited and be absolutely at the disposal of Government, without prejudice to any other remedy or action that the Government may have to take * * *

In the case of suc