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Bela Raja: That is because the personality and skills were there. You were able to find expression in a manner you were comfortable with and you defied every rule so that nobody would stop you from doing what you needed to do.

Hafeez Contractor: I was more interested in other things. If, for example, while in class, it started raining outside, I would think of the flowing water and how to build a dam to block it. I would be thinking about the flow of water within the dam and how much of water the dam would be able to hold. That was my interest for the day.

     When students lost a button while playing or fighting, they would come running to me and I would cut a button for them from chalk, using a blade. Discipline in the school was very important and no student could afford to have a button missing. The student would get past dinner with a full neat uniform and after that it did not matter.
Explanation:
 
From the conversation with Hafeez Contractor, Ms Bela understood that Hafeez's skills were developed by doing other activities or participating in sports. Hafeez broke down each rule as per his wish. He studied and worked hard in his way without letting anybody or anything stop him. That made him succeed in his life.

Hafeez explained that he was drawn to several things. If it were raining outside while he was in class, he would start thinking about the running water and then consider building a dam to stop it. He'd feel about the flow of water inside the dam, as well as the dam's capacity to contain water, in great detail. It would become his interest for the day.

dam-209757_1920.jpg
Hafeez would think of how to construct a dam

Hafeez was so clever that if somebody lost a shirt button while playing or fighting, they would come to him. He'd use a blade to cut a piece of chalk into a button for them. Even small things like buttons were essential in school since the discipline was so important. They had to stay in proper uniform until supper time got over, and later it didn't matter. No one would question them about the broken buttons or untidy clothes after supper time. It implies that they should remain neat and discipline as they were in boarding school until they go to bed.
 
Meanings of the difficult words:
 
S.NoWords
Meanings
1
Dam A barrier constructed to hold back water and raise its level, forming a reservoir used to generate electricity or as a water supply
2
ChalkA soft white limestone (calcium carbonate) formed from the skeletal remains of sea creatures
3
BladeThe flat cutting part of a sharpened weapon or tool
Reference:
National Council of Educational Research and Training (2008). It so happened. The Treasure Within (pp. 25-33). Published at the Publication Division by the Secretary, National Council of Educational Research and Training, Sri Aurobindo Marg, New Delhi.