- (1.) This appeal is against an order dated 13th September, 1996 passed by the High Court of Rajasthan.
(2.) Briefly stated the facts are as follows: The appellants had sanctioned a loan to the respondents against security of a mortgage. As the respondents failed to repay the loan the appellants filed an application under Sections 31(1)(a) and (c) and 32 of the State Financial Corporation Act for recovery of a sum of Rs. 10,89,265.88. Parties compromised the dispute and signed a deed of compromise. The relevant terms of the compromise deed read as follows: "1. xxx xxx xxx 2. That the Company hereby confirm the balance dues of the Corporation (after deduction of Rs. 1,00,000/- (Rupees one lakh only) received on 1-4-1976) as on 5-9-1977 at Rs. 12,08,806.83 Ps. (Rupees Twelve lakhs eight thousand eight hundred six and paisa eighty three only) as per the statement of account enclosed herewith and agree to pay the said dues as follows along with future interest @ 5% above the bank rate prevailing from time to time subject to a minimum of 13-1/2% per annum or at such other rate of interest as may be decided by the Corporation for similar advances from time to time, with half yearly rests on product basis and expenses and cost of litigation. The increased rate of interest shall apply from the 1st January, 1977. (Emphasis supplied) xxx xxx xxx 7. That the company and the Corporation further specifically agree that on non-payment of consenting two instalments of the repayment of the loan for the loan or interest or expenses hereinabove mentioned or on breach of any of the terms and conditions of this compromise, the Corporation shall have the right to receive the whole dues in one lump sum and to get the compromise decree executed by sale of mortgaged and attached properties and to ask the lessee to pay the rent directly to the Corporation."
(3.) On 22nd September 1977 an Order came to be passed wherein it was recorded that the parties had compromised and that they had filed the compromise deed in Court. The Order then reproduces the entire compromise deed. Clause 5 of the Order, which is relevant, reads as under : "5. Therefore, the application is allowed and the suit is decreed in terms of compromise in favour of plaintiff-Corporation and against the defendant of Rs. 12,08,806 and 83 paise only. The defendant shall pay the interest on this amount at the rate of 5% more than the current Bank interest rate which shall not be less than 13% and the cost of the suit shall be paid by the defendant. The increased rate of interest shall be effective w.e.f. 1-1-1978. The above amount be paid in the instalments as per the terms of the compromise. The compromise shall form part of the decree and the corporation shall be entitled to realize the amount of compromise decree from the property of the defendant which is mortgaged with the Corporation and the same has been attached." (emphasis supplied).;