( 1 ) THIS appeal by the plaintiff is directed against the judgment and decree dated 21-7 1975 passed by the Prl. Civil Judge, bangalore Dist. , Bangalore in RA No. 74/ 1974 on his file, allowing the appeal and modifying the judgment and decree dated 30-10-1975 passed by the I Addl. II Munsiff, Bangalore, in OS No. 395/68 on his file, decreeing the suit of the plaintiff as prayed for.

( 2 ) THE plaintiff is a registered company with its registered office at Calicut and branch office at Malleswaram, Bangalore. One of the purpose of the company is to run chit transactions. The 1st defendant raju became a member of a chit group. At the 4th auction he was the successful bidder on 10-1-1964, at a discount of Rs. 1,250. He furnished the 2nd defendant as surety on 19-2-1964 and they executed a deed of simple mortgage hypothecating the immovable property described in the schedule. The amount of mortgage was rs. 4,500 and interest to be paid was at 12% p. a. Thereafter the 1st defendant made payment amounting to Rs. 2,550. He failed to pay the balance in spite of demands. Hence, the plaintiff filed a suit for recovery of Rs. 4,500 + 1,980 towards interest in all Rs. 6,480,