KATHIRINGA Vs. ASSYRIAN CHARITIES AND BANKING COMPANY LTD

JUDGEMENT

(1.) The only point pressed before us on behalf of the appellants in this appeal is that in assessing the liability of the appellants they are entitled to the benefit of a calculation of interest at 9 per cent from the dates of the advances, treating the advances alone as principal amount and without allowing any quarterly or half yearly rests to the creditor as done by the court below. The contention appears to be warranted by the decision in Chandy Cheriyan v. Travancore General Bank Ltd., 1965 KLT 737 , and also by the decision in State Bank of Travancore v. Shahudeen Musaliyar 1964 KLT 796 . Following the above decisions, we accept the above contention.

(2.) It was also fairly conceded that the appellants are entitled to the benefit of repayment only in eight instalments as provided in the proviso to S.2(c)(xi) of the Kerala Act 31 of 1958 and not to the benefit of repayment in seventeen instalments as held by the court below. This is the subject matter of the memorandum of cross objections.

(3.) The appeal is allowed as indicated above, and the decree of the court below is modified by deleting that portion of it, which directs that interest be added to the principal and treated as principal at the end of Makaram and Karkitakam each year, till 27th August 1953, and thereafter at the end of every quarter. The memorandum of cross objections is also allowed, and the decree of the lower court will stand modified, by directing that the appellants are liable to pay the amount decreed in eight equal half yearly instalments, instead of seventeen such instalments as directed by the court below.