Judgment :-

S.B. Sinha, J.

1. Leave granted.

2. Appellant is a Corporation constituted under the State Financial Corporations Act, 1951 (for short "the Act"). Respondent No. 1 intended to set up a factory in the Industrial Area, Kokar in the town of Ranchi. It, on or about 5.11.1976, for the aforementioned purpose, sought for and was granted loan by the appellant for a sum of Rs. 3.36 lakhs.

3. An agreement was entered into by and between the parties, in terms whereof, the respondent no. 1 mortgaged the properties described in Schedules ‘A, ‘B and ‘C thereof in favour of the appellant - Corporation, viz., the lease hold right over a piece of land admeasuring 0.56 acres at Village Kokar.

4. In terms of the said deed of mortgage, the plaintiff was required to liquidate the aforementioned amount of loan in fourteen instalments. The interest payable thereupon was 14.25 per cent per annum payable every six months. Indisputably, the plaintiff refunded a sum of Rs. 1,32,000/- out of the total sum received from the appellant, viz., Rs. 3,34,300/-. The plaintiff installed machineries upon construction of buildings over the plot. The factory started operation from the month of November, 1978.