C JOSEPH MATTOM Vs. FREE INDIA BANK LTD

JUDGEMENT

(1.) This appeal is against the judgment of Raman Nayar J., in B. C. S. No. 3 of 1963 in B. C. P. No. 3 of 1955. The suit was by the Liquidator of the Free India Bank Ltd., (in liquidation), for recovery of a sum of Rs. 20, 361 together with interest at 9 per cent per annum, due under an Otti Ext. P-1 dated 18-2-1953 executed by the defendant in favour of the Bank. The learned Judge passed a preliminary decree for the amount due on the mortgage after giving credit to the payments and set off admitted by the plaintiff, with simple interest at 9 per cent per annum upto the date of the suit and 6 per cent per annum thereafter. Suitable directions were given for appropriation of the admitted payments and set off. This appeal has been preferred by the defendant.

(2.) The only question agitated before us in appeal is the liability for interest. Raman Nayar J., held that the claim for interest fell squarely within clause (d) of sub-s.(1) of S.68 of the Transfer of Property Act. The learned Judge was of the view that:

(3.) It was also held by the learned Judge that even if the plaintiff is not entitled to interest as such under S.68 of the Transfer of Property Act, it is entitled to compensation for breach of covenant regarding the possession and that the profits derivable from the property would be a true measure of the quantum of compensation, and that this would amount to more than interest calculated at nine per cent as claimed by the plaintiff.