- (1.)THE plaintiff-appellant was awarded a contract for the supply of 30. 000/- live sheep and goats to the defendant-respondent No. 1 i. e. Central Dairy Farm, Uttar pradesh Pashu Dhan Uddyog Nigam Limited at the rate of Rs. 786/- per quintal. The contract was for a period of one year and the supply was to be made between 1-10-1985 to 30-9-1986. The plaintiff-appellantdeposited a sum of Rs. 2. 60. 000/- as security for the good performance of the above contract. The said security amount was in the form of a fixed deposit with the Bank of india, Jhansi. The contract/agreement contained a forfeiture clause in respect of the security amount. According to the defendants-respondents since the plaintiff-appellant defaulted in the due performance of the contract, the security was directed to be forfeited.
(2.)IT was in the circumstances the plaintiff-respondent a registered partnership firm through one of its partner filed original suit for permanent injunction restraining the defendant-respondent No. 1 from encashing the security amount of Rs. 2. 60. 000/- kept in fixed deposit receipt No. 9/151 dated 21-9-1985 with the bank of India, Jhansi. Thesuit was decreed by the Court of first instance but in appeal the Judgment and order of the trial Court was reversed and the suit was dismissed. Therefore, the plaintiff-appellant has preferred this second appeal.
(3.)HEARD Sri Ramendra Ashana, learned counsel for the appellant and Sri R. N. Singh for the respondent No. 1.