KATTAMURI NARASIMHAN Vs. THUMURUGOTI PREMAYYA

JUDGEMENT

(1.) IN 1933 the appellant took a transfer of a mortgage debt the rate of interest on which was 12 per cent per annum with annual rests. In 1937,. the Madras Government passed the local Act, (Act VIII of 1937) amending the Usurious Loans Act (X of 1918), under which amendment the Court had to presume that if an agriculturist was charged compound interest, the interest was excessive. The questions that arise for decision are : (1) whether Sub -section 4 of Section 3 of the Act will save the appellant from the application of the Madras amendment, and (2) whether the rate fixed by the lower appellate Court as the fair rate, namely, 9 per cent simple interest, is reasonable.

(2.) SUB -section 4 of Section 3 of the Usurious Loans Act reads:

(3.) THE appeal is dismissed, except with the slight modification noted above in the rate of interest up to the date of transfer. The appellant will pay proportionate costs to the respondent.