The writ petition is filed challenging the judgment passed by the Co-operative Tribunal. Hyderabad in CT A No. 269 of 2000 dated 2-7-2001.

2. The facts, which are not in dispute are that the petitioner is Society that is involved in business of lending money to other societies. The 1st respondent, a Co-operative Housing Society, took loan of considerable amount to provide flats to its members. The properties of the 1st respondent have been mortgaged with the petitioner while obtaining the loans, phase-wise. Many of the flats have been constructed and distributed to its members. As per the agreement, the rate of interest is 14.20% and 14.30% per annum and as many as four different mortgage deeds were executed for different properties. At one point, the 1st respondent became defaulter. The petitioner initiated proceedings under the provisions of the A.P. Co-operative Societies Act, 1964 (for short 'the Act') and proceedings under Section 71 of the Act in order to recover the loan amounts. The competent authority under Section 71 of the Act calculated the interest at a compounding rate. The first respondent has no dispute with regard to the amounts defaulted but disputed only the