Nasirullah Beg, J. - (1.) This second appeal has been filed by the Kanpur Iron Brass Works and Flour Mills.
(2.) The appellant was the defendant in a suit brought by the plaintiff for recovery of Rs. 3,000/-, which was alleged by the plaintiff to have been advanced to the defendant towards the purchase of 20 Bengal Type Kolhus to be manufactured by the defendant and delivered to the plaintiff according to the agreement between the parties. The plaintiff's case was that the defendant had committed breach of contract by failing to supply the kolhus as stipulated, and hence he claimed a refund of the above amount. The plaintiff further claimed an amount of Rs. 810/- by way of interest.
(3.) The suit was resisted by the defendant. The defendant's case was that there was no breach of contract on his part. The defendant had manufactured the 20 kolhus which he had undertaken to construct, that the said kolhus were lying in his workshop, and that, in spite of repeated notices on his part the plaintiff had failed to take delivery of the same. The defendant therefore alleged that there was, on the other hand, a breach of contract on the part of the plaintiff. The defendant's case was that the said amount of Rs. 3,000/- was earnest money, and was, therefore, liable to be forfeited on breach of contract by the plaintiff, and, in any case, the defendant had suffered damages, and, taking into consideration the reasonable compensation to which he was entitled, the decree for Rs. 3,000/-in favour of the plaintiff should not have been passed.;