PATHAK, J. :- The petitioner, M/s. Prakash Pottery Industries, obtained a loan from the Uttar Pradesh Government for developing its pottery industry. A deed of agreement dated March 5, 1966, was executed between the petitioner and the State Government. It required the petitioner to apply the loan for purchasing machines for its pottery industry within a period of one year, and provided for repayment of the loan with interest in instalments. Then followed the provisions:

"10. If any of the instalments aforesaid shall be in arrears in whole or in part, the whole sum, then remaining due to the creditor under the deed on account of principal and interest shall thereupon become payable at once and the borrower will be liable to pay the same.

11. For the consideration aforesaid and in further pursuance of the aforesaid agreement the borrower hereby grant and transfer by way of simple mortgage to the creditor, all that property described in the schedule hereto to the intent that the said property hereby mortgaged shall remain and be charged by way of simple mortgage as security for the repayment to the creditor of the said principal money and interest in accordance with the covenan