(1.) By this appeal, the appellant State has challenged the judgment and decree dated 26/08/1976 passed by the Civil Judge (Senior Division), at Bhavnagar, in Special Civil Suit No. 71 of 1971. A resume of material facts giving rise to the present appeal, may be narrated, so as to appreciate the merits of the appeal.
(2.) The present respondent is the original plaintiff and the present appellant is the original defendant and, they are hereinafter referred to as 'plaintiff' and 'defendant' for the sake of convenience and brevity.
(3.) The plaintiff is a registered partnership firm which was given a contract for the construction of road and railway, siding road, Akwada Creek, Near Port, Bhavnagar. The defendant had accepted the tender of the plaintiff and the plaintiff was accordingly informed on 4/01/1965. The plaintiff thereafter deposited the security deposit in connection with the aforesaid work. Initially, the security of Rs. 6,602.00 was given by the plaintiff and thereafter further security deposit of the same amount, i.e., Rs. 6.602.00 was given. Thus, the defendant had taken two security deposits from the plaintiff.