BOGGAVARAPPU SATYANARAYANAMURTHY Vs. GONTLA VENKATA PICHAIAH AND ORS.

JUDGEMENT

(1.) THE appellant sued the respondents in the Court of the Subordinate Judge of Bezwada for specific performance of an agreement which they had entered into with him to execute in his favour a mortgage of Immovable properties to secure moneys lent by him to them. The Subordinate Judge granted a decree for specific performance, but he reduced the agreed rate of interest, namely, compound interest at 12 3/8 per cent, with half -yearly rests to 8 per cent, simple interest. He refused to give the plaintiff a mortgage decree in this suit. The appellant has appealed both with regard to the reduction of interest and the refusal of the Subordinate Judge to grant him a mortgage decree. The respondents have not appeared.

(2.) THE reason given by the Subordinate Judge for reducing the rate of interest which he regarded as " unconscionable and penal " was that the plaintiff was a very rich man and the defendants were poor, which according to him meant that he was in a position to dominate them. We do not regard compound interest at 12 3/8 per cent, to be unconscionable even with half yearly rests, but Mr. Satya -narayana Rao on behalf of the plaintiff has agreed to take simple interest at 12 3/8 per cent. The decree of the lower Court will be amended accordingly.

(3.) THE decree of the trial Court will stand except as regards the rate of interest. As the respondents have not appeared we make no order as to costs.