SAJANLAL JHAVERILAL AND CO Vs. GULABCHAND KESHRICHAND

JUDGEMENT

(1.) The plaintiffs have filed this suit to enforce a mortgage in their favour created by defendants Nos. 1 and 2, and the husband of defendant No. 3 as members of a joint and undivided Hindu family. The mortgage was an equitable mortgage effected on July 19, 1947, and was for a sum of Rs. 42,000. The mortgagors agreed to pay interest at the rate of one per cent, per mensem by equal monthly instalments. After the mortgage was effected by the mortgagors, Panachand Keshrichand, the husband of defendant No. 3, died on March 23, 1948. Defendant No. 3 is his heir and legal representative. On July 28, 1948, Sajanlal Jhaverilal and Co. vs. Gulabchand Keshrichand and Ors. (27.06.1951 - BOM... Page 2 of 7 janlal Jhaverilal and Co. vs. Gulabchand Keshrichand and Ors. (27.06.1951 - BOM... Page 2 of 7 the attorneys of the plaintiffs called upon the defendants to repay Rs. 42,000 with interest at the rate stipulated. The defendants, however, failed to pay the amount demanded. The plaintiffs thereafter filed the present suit seeking to recover Rs. 42,000 as principal, and Rs. 14,640 as interest due up to October 18, 1950, with further interest on the amount of Rs 42,000 at the rate of 1 per cent, per mensem from October 19, 1950.

(2.) The defendants have appeared in this Court to defend the suit. They have not denied execution of the mortgage nor the covenants thereof. The only point which they have sought to raise is, that the plaintiffs being money-lenders, the rate of interest which con be awarded as against them cannot exceed the rate provided under the notification issued by the Government of Bombay on December 27, 1947, under the Bombay Moneylenders Act, XXXI of 1947. The plaintiffs claim that they are entitled to interest at the stipulated rate till the date fixed for redemption under the provisions of Order XXXIV, Rule 11, of the Civil Procedure Code. The sole question that falls to be decided therefore is whether the plaintiffs are entitled to interest at the stipulated rate, notwithstanding the provisions of the Bombay Money-lenders Act, XXXI of 1947.

(3.) At the outset it must be stated that Mr. Joshi on behalf of the plaintiffs concedes that the plaintiffs are money-lenders under the provisions of the Bombay Money-Lenders Act, XXXI of 1947.