K. JAGANNATHA SHETTY, J.

( 1 ) THE appellant is a Financial Corporation. The respondent, Narayana ramachandra Naik, is a businessman and is the proprietor of a hotel called 'nityananada Bhavan' at Ramadurg, dist. Belgaum. In 1970, the Corporation sanctioned a loan of Rs. 2 lakhs for expanding the hotel business, out of which the respondent obtained Rs. 1. 59. 000. The loan was repayable with interest at 9 per cent per annum in twenty half yearly equal instalments and the first of such instalment was payable on 22nd February, 1972. If the instalments were not paid on the due dates, they should carry interest at 11 per cent per annum from the due date upto the date of payment. The respondent committed default in payment of the instalments. The corporation, therefore, moved the district Judge under S. 31 of the state Financial Corporation Act, 1961, for a declaration that the respondent was due in a sum of Rs. 2,00,348-36 and interest at 11 per cent per annum on Rs. 1,59,000 from the date of petition till date of payment. The respondent resisted the claim of the Corporation contending inter alia that the Corporation did not maintain proper accounts and it has not credited to the accou

Click Here to Read the rest of this document