J U D G M E N T

The suit was filed to enforce payment of money secured by a mortgage. The plaintiff claimed a sum of Rs.1,51,64,353/- from defendants 1-4 with future service charges at 4% p.a. and penal interest at 18% p.a. from the date of plaint till the date of final satisfaction of the loan amount. In the event of default, the plaintiff sought to enforce the mortgage by bringing the property described in the schedule to the plaint for sale and for appropriation of the decretal amount from the sale proceeds after defraying the expenses of sale.

2. In the plaint, the plaintiff stated as follows:

(a) The plaintiff is a board formed by the Ministry of Agriculture, Government of India for the purpose of promoting, developing and supporting agriculture by providing financial assistance to institutions and individuals engaged in horticulture or the processing of agricultural products. The first defendant applied to the plaintiff on 28.06.1995 for financial assistance by way of term loan for setting up an export oriented unit (EOU) for the cultivation of cut flowers. By relying upon the representation of defendants 2 to 4, the plaintiff sanctioned a term loan not exceeding Rs.1 crore on