This suit has been filed for recovery of a sum of Rs. 98, 23, 910.90 with further interest at 22% per annum on Rs.78, 99, 682.35, for selling the schedule mentioned property in the event of default, for a direction to the first defendant to pay the amount, so deficient if any, with further interest at 22% per annum and for costs.

2. The plaint averments are as follows : The first defendant approached the plaintiff for financial assistance upto Rs. 25.00 lakhs in order to process, store and export Marine products, some time in March and April 1993. He represented that a packing credit of Rs.25.00 lakhs could be sanctioned to him with which he would achieve a target of an export turn over of Rs. 300 lakhs per annum and in turn the plaintiff could charge apart from interest at 14% per annum on such credit, also service charges at 3% of the F.O.B. value of such exports. D1 further offered to keep all processed and finished stock at D1's cold storage fully hypothecated to the plaintiff, to secure repayment of the loan. It was contemplated that the plaintiff could negotiate the export documents, immediately on the opening of such letters of credit, realise the full value thereof, appropriate their service charges and accrued interest and any other expenditure incurred by the plaintiff with regard to such exports and also the amounts advanced to D1 till then and pay the balance to D1. Accordingly, an agreement between the plaintiff and D1 was entered into on 6-4-1993. D1 executed a hypothecation agreement on 6-4-1993, wherein D1 had represented that they were lessees of the cold storage belonging to New India Maritime Agency at Nima Complex, 26-32, G. A. Road, Madras-21. D1 also executed a promissory note on 6-4-1993 for Rs.25.00 lakhs. Upon execution of the abovesaid documents, Rs.10.00 lakhs were advanced by the plaintiff to D1 on 7-4-1993. Further advances were also made by the plaintiff to D1. D1 requested the plaintiff to sanction further advances to D1 to cover their operations at and from Mangalore storage also. Since D1 wanted more funds, the plaintiff insisted upon D1 furnishing some security of immovable property. The defendants 1 and 2 deposited the original title deeds relating to the immovable property described in the schedule, owned and possessed by D2, on whose written authority and on whose behalf, D1 deposited the title deeds with the plaintiff under covering letter dated 15-7-1993 with a view to create and equitable mortgage over such property. A memorandum of understanding was also entered into between the plaintiff and D1 on 21-7-1993. Thereafter, the plaintiff continued to make further advances to D1, at his request. In this process a total sum of Rs.1.17 crores was advanced by the plaintiff. Only a sum of Rs. 44, 39, 300/- was realised from the shipments effected by D1. There is a balance of Rs.72, 60, 700/- to be realised. From the statement it can be seen that there has been no export or realisation after 13-1-1994. In spite of repeated demands and reminders the defendants have not made any further payments. Since from 13-1-1994 there has been no export at all, the plaintiff is entitled to charge interest at 22% per annum on all outstandings, in terms of clause 8 of M. O. U. Interest works out to Rs.19, 38, 705.60. After giving credit to a sum of Rs.48034.05 realised by the plaintiff through sale of scrap, the interest outstanding would be Rs.18, 90, 671.55. The plaintiff was constrained to spend Rs.6, 38, 982.35 in respect of a container exported by D1, but returned due to rejection by the foreign buyer. Under this head, a sum of Rs.6, 72, 539.35 is due and payable by D1 which is inclusive of interest viz. Rs.33557/-. Thus a total sum of Rs.98, 23, 910.90 is due and payable by D1 to the plaintiff. D1 cleverly withheld one original bill of lading out of the three originals and made use of it by sending Abdul Rasheed directly to Singapore and getting the Cargo cleared with such bill, forging the sig