Judgment

M. Jagannadha Rao, J.-Leave granted.

2. The appellant (Managing Partner) is the 2nd defendant in the suit. The 1st res­pondent-Bank filed a suit O.S. 101/1980 based on mortgage for recovery of Rs. 7.82,881.78 against M/s. Shiva Rice Industries (a partnership firm) (1st defendant), the appellant (defendant 2) and defendants 3 to 10 (partners) on the file of the Principal Civil Judge, Shimoga. These defendants had taken a loan of Rs. 5 lakhs on 7.4.1976 agreeing to repay in 52 monthly instalments each of Rs. 8000/- from 7.4.1977 with interest at the end of each quarter. The plaint schedule properties were offered as security and an equitable mortgage was created as per Ex. P.4 by deposit of title deeds. The defendants paid Rs. 75,000/- on 6.11.1984, Rs. 40,000/- on 21.12.1984, Rs. 15,000/- on 22.1.1985, Rs. 20,000/- on 8.7.1985 and Rs. 10,000/- on 14.11.1985, in all Rs. 1,60,000/-. The trial Court passed a prelim­inary mortgage decree on 4.7.1982 with proportionate costs but the decree-holder Bank was directed to file a fresh memo of calculation calculating the interest on the balance of principal amount due at 16.5 per annum from the date of the equitable mortgage at yearly