The facts relevant to the point are as follows : The Municipal Board, Saharanpur, respondent before us and hereinafter referred to as the plaintiff-brought a suit for the recovery of Rs. 12,044/-/9 and future interest upto the date of realisation from B. C. Mohindra, appellant before us and hereinafter referred to as the defendant. In brief, the case of the plaintiff was c that there was an auction on March 29, 1960, of the theka for collecting tahbazari dues of the mandi in Mazahir Gang alias Gan j J adid, Saharanpur, for one year from April l, 1950 to March 31, 1951, subject to the conditions of sale entered in the amended sale proclamation. The defendant bid Rs. 40,000/- subject to the confirmation by the Board. The Board did not confirm the D auction sale, and on April 8, 1960, the tahbazari was re-auctioned. The defendant bid Rs. 53,025/-. At -Ole time of the auction sale a meeting of the Board was also held in which the auction aforesaid was confirmed under Resolution No. 26 dated April 8, 1950, in the presence of the defendant, and only the condition relating to the payment of auction money was amended E to provide for payment in four instalments. The defendant had to deposit II 4th of the bid on April 8, 1950. He failed to deposit this instalment on April 8, 1950, but on April 10, 1950, he deposited the instalment and took charge of the mandi aforesaid and began to collect tahbazari dues. The defendant was asked to execute and complete an agreement in favour of the F plaintiff according to the conditions and the rules but he continued to put off the matter. As the defendant failed to deposit the amount of the second instalment and execute the agreement, the plaintiff cancelled the theka of the defendant and began to collect tahbazari dues through its own staff and re-auctioned the theka on July 3, 1950. After taking into accoulllt the money received from the re-auction on July 3, 1950, and the money G deposited by the defendant, according to the plaintiff there was a shortage of Rs. 12,044/-/9 .