B. Veerappa, J

The appellant who was the guarantor is before this Court challenging the order, dated 27.11.2009 made in Misc.No.2/1999 on the file of the Addl. District Judge, Shivamogga, allowing the petition directing the appellant and another who are guarantors to pay a sum of Rs. 2,60,738/- with future interest at the rate of 16% per annum compounded quarterly. The appellant has filed the present appeal only insofar as the direction issued against him.

2. The parties are referred to as per their ranking before the Court below.

3. The respondent No. 1 herein filed a petition under section 31(1)(aa) of the State Financial Corporations Act, 1951, before the Addl. District Judge, Shivamogga, contending that respondent Nos. 1 to 5 being the Directors of M/s. Malnad Fasteners Private Limited Company incorporated and registered under the Companies Act, 1956, approached the petitioner Corporation and got sanctioned and obtained a term of loan of Rs. 4,80,000/- on 27.07.1998 for establishing M/s. Malnad Fasteners Private Limited Company. The said loan amount was to be repaid to the Corporation with interest at 14.5% per annum. The Company was established for manufacturing bolts,