( 1 ) THIS appeal by the plaintiff/bank is directed against the judgment and decree dated 16-6-1979 passed by the ii Addl. Civil Judge, Belgaum, in O. S. No. 101 of 1977, on his file, disallowing compound interest and interest at enhanced rate from a certain period.

( 2 ) THE defendant obtained a loan of rs. 36,750 from the plaintiff /bank on 16-10-1971. He executed a promissory note as per Ext-P-1 as also a hypo thecation deed as per Ex P-5. He also deposited title deeds of immovable properties creating mortgage. Both in the promissory note Ex P-1 as also in the hypothecation deed, he agreed to pay the said sum on demand with interest at 4 1/2% per annum over the reserve Bank Rate, minimum 9 1/2% per annum with quarterly rests. The original minimum rate fixed was 10 1/2% per annum. According to the Bank- it was subsequently increased from 1-8-1974 to 14 3/4% per annum and from 25-6-1975 it was raised to 15 1/2% per annum by the appellant in terms of the agreement between the parties.

( 3 ) THE plaintiff IBank instituted the suit at O. S. No. 101 of 1977 for recovery of the amount outstanding viz. , Rs. 65,997-17 p. with interest at 15 1/2% per annum from the date of the suit till

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