ORDER

The question for decision in this appeal is: When the period of limitation for recovery of the balance due after sale of mortgaged property starts. Briefly stated, the facts are as follows: the appellants had given a loan to a partnership firm of M/s Engineering Works. As security for that loan, a mortgage deed was executed. Certain other documents were also executed with which we are not concerned in this appeal.

Clause 7 of the mortgage deed is important. It reads as follows:

“Without prejudice to the above rights and powers conferred on the Corporation by these presents and by Sections 29 and 30 of the State Financial Corporations Act, 1951 and as amended in 1956 and 1972 and the special remedies available to the Corporation under the said Act, it is hereby further agreed and declared that if the partners of the industrial concern fail to pay the said principal sum with interest and other monies due from them under these presents to the Corporation in the manner agreed, the Corporation shall be entitled to realise its dues by sale of the mortgaged properties, the said fixtures and fittings and other assets, and if the sale proceeds thereof are insufficient to satisfy the dues