JUDGMENT

Sethi, J.-The only point in controversy in the present appeal is as to whether the respondent-loanee is also entitled to interest at the rate of 13% on the amount to be refunded which was admittedly realised by the sale of his industrial unit, in excess of his liability in a loan transaction.

2. Vide the impugned judgment in this appeal, the High Court has directed the refund of the excess amount, if any, after calculations along with interest at the rate of 13%, the rate on which the Corporation is stated to have charged the respondents on the amount of loan advanced to him.

3. The facts giving rise to the present appeal are that on his request the appellant-Corporation sanctioned on 18.12.1983 a term loan of Rs. 15 lacs against the total cost of the Project of the respondent for construction of a hotel unit. The appellant-Corporation had also sanctioned an additional loan of Rs. 5.50 lacs on 6.8.1986. The total sanctioned loan of Rs. 20.50 lacs was dispersed to the respondents during the period from 6.7.1984 to 1.5.1987. The respondents committed defaults in the payment of the loan amount with the result that the appellant-corporation took over the possession of the hotel u