The deed also provided for enhancement of interest periodically.
The District Court also directed the appellants to pay Rs.
16,35,359.26 said to be due as on 1 2 1981 with interest at the rate of 15 per.
1,00,000 to the respondent on or before 19 9 1983 and the balance decree amount in monthly instalments of Rs.
cent per annum till the date of realisation.
7,97,000 will be the principal amount.
7,97,000 from 2 9 1981 till the date of this decree and thereafter at the rate of 15 per annum on the above mentioned principal amount till the date of realisation.
Therefore the High Court held that the Corporation will be entitled to interest as claimed from the date of petition till the same was realised.
The loan was repayable in 17 half yearly instalments as per the schedule annexed to the mortgage deed with interest at 10.5 per annum.
15,83,265.51.
As per that Statement, the total principal and interest due to the petitioner Corporation from the respondents under the two loans as on 1 2 1981 is Rs.
One of them was said to be a dispute raised by a neighbour with regard to a portion of the property and another was said to be the closure of the entrance to hotel from M.G. Road, Ernakulam which was blocked by the Public Health Engineering Department.
The appellants have preferred this appeal on obtaining special leave.
The respondent was number responsible for any of the difficulties of the appellants.
The appellants filed a statement of objections in which the main companytention raised by the appellant was that the industrial unit companyld number be companypleted or the hotel companyld number be companymenced on account of several difficulties faced by the appellant.
The respondent filed a petition under Section 31 of the State Financial Corporations Act, 1951 for short the Act before the District Court, Ernakulam for an order of sale of the properties described in the schedule to the petition for the realisation of Rs.
Petitioner will get its companyts from the respondents.
40,000 beginning from 1 5 1988.
The District Court found against the companytentions of the appellants on Points 1 and 2.
Relying upon the judgment of this Court in Everest Industrial Corporation v. Gujarat State Financial Corporation the High Court held that Section 34 C.P.C. was number attracted to the proceedings instituted under Section 31 of the Act and interest will be payable in accordance with the terms of agreement between the parties till the entire amount due was paid.
In the last but one paragraph the District Court observed as under In the result, the petition is allowed and the petitioner Corporation is given a decree against the respondents for Rs.
The appellant took a further loan of Rs.
It modified the order of the District Court as under The impugned order is modified by holding that the Corporation is entitled to interest as claimed from the date of petition till the date of order calculated on the amount outstanding.
5,50,000 from the respondent for their industrial companycern and they executed a mortgage deed on 30 12 1971.
The respondent filed an appeal before the High Court of Kerala.
Under Section 34 C.P.C. the petitioner Corporation will be entitled to get interest on the principal amount from the date of the petition till the date of this decree only at the rate of 6 per annum.
2,50,000 on 7 3 1975.
13,18,265.51 with interest thereon at the rate of 15 per annum from 1 2 1981 to 2 9 1981, with further interest of 6 per annum on the principal amount of Rs.
Respondents are at liberty to discharge the total amount number found due in monthly instalments of Rs.
The relevant paragraph of the District Courts judgment reads as under So, I accept the figures given in revised Statement 1 filed by the respondents on 5 8 1983.
Srinivasan, J. The appellants borrowed a sum of Rs.
