AR.Lakshmanan, J.

The defendant in O.S. No.579 of 1984 on the file of the First Additional Subordinate Judge, Pondicherry is the appellant in this appeal.

2. The suit was initially filed by one P.Nirmala as an indigent person in O.P. No.46 of 1983. The said P.Nirmala is the wife of the 1st respondent and mother of respondents 2 to 5. Leave was granted to her to sue as an indigent person. P.Nirmala died before the suit was taken on file. Hence, her legal representatives viz., her husband and four children, who are the respondents herein, were brought on record in O.P. No.46 of 1983 itself. The respondents herein also sought for permission to sue as indigent persons. Leave was granted to them also to sue as indigent persons. Thereupon, O.P. No.46 of 1983 was converted as O.S. No.579 of 1984.

3. The suit was prosecuted by the plaintiffs on the following pleadings. The deceased plaintiff Nirmala wanted to start a bus body building industry under the name and style of M/s.Cholan Industries by availing financial assistance by way of loan to an extent of Rs.2.88 lakhs from the Pondicherry Industrial Promotion Development and Investment Corporation (hereinafter referred to as