Alfred Henry Lionel Leach, C.J.

1. The appellant is a money-lender. On the 27th August, 1935, the respondent executed in the appellants favour a mortgage to secure the sum of Rs. 32,000 bearing interest at 15 per cent, per annum. The properties covered by the mortgage were lands and buildings in the City of Madras. The mortgagor had previously charged these properties. At the date of the mortgage to the appellant, there was due to four prior mortgagees and to other creditors a total sum of Rs. 31,000. The appellant undertook to discharge all these debts and pay the respondent Rs. 1,000 in cash to pake up the agreed c6nsideration of Rs. 32,000. In the month of January, 1936, the appellant, with the consent of the respondent, went into possession of the mortgaged properties. The arrangement was that he should collect the rents and profits, pay all taxes and maintenance charges out of his collections and appropriate the surplus to the amount due under his mortgage.

2. On the and February, 1942, the respondent wrote to the appellant asking for an account of his appropriations and referred to the fact that he repeatedly asked to be furnished with a statement of account. The appell