Judgement

VENKATARAMIAH, J. :- The short question which arises for consideration in this case is whether the rate of interest chargeable on the amount payable under an order passed under S. 32 of the State Financial Corporations Act, 1951 (63 of 1951) (hereinafter referred to as the Act) from the date of the said order is governed by Sec. 34 of the Code of Civil Procedure, 1908 (hereinafter referred to as the Code) or whether it is payable at the contractual rate.

2. The Appellant No. 1 M/s. Everest Industrial Corporation Private Limited, Baroda and its Directors had borrowed from the Gujarat State Financial Corporation (hereinafter referred to as the Corporation) a sum of Rs. 6 lakhs for the acquisition of fixed assets, namely, land, bearing original Survey No. 163 and now bearing Survey No. 949 of Baroda Measuring 1 acre and 3 gunthas and the factory building to be constructed thereupon and for purchasing plant and additional machinery under a deed of hypothecation dated April 24, 1970 hypothecating all machinery and equipment situated at the factory premises situated on Survey No. 949. They also created an equitable mortgage mortgaging the said land and factory building by deposi