MODALAVALANA MUKUNDARAO Vs. HANUMANTHA SURYANARAYANA NAIDU

JUDGEMENT

(1.) The only question in this appeal is whether the Subordinate Judge of Chicacole was right in refusing to give relief under the Usurious Loans Act, 1918. The defendants executed a mortgage bond in favour of the plaintiff, Ex. P-1 dated 10-8-1936 for Rs. 6,000 payable with interest thereon at 12 annas per cent per mensem at compound rate. The defendants pleaded that the said rate was excessive and substantially unfair and therefore was liable to be reduced. The learned Subordinate Judge, Chicacole, held that there was nothing excessive or unconscionable in the rate of interest charged on the suit bond. The defendants have preferred the above appeal.

(2.) Section 3(1) of the Usurious Loans Act, 1918 reads :

(3.) The appeal is allowed in part with proportionate costs in this Court. The plaintiff will only get his proportionate costs in the Court below.