SURYAPAGA RAVIKUMAR Vs. PAKKELA RAMARAO

JUDGEMENT

(1.) THE appeal is directed against the judgment and decree in O. S. No. 42 of 1999 on the file of Senior Civil Judge's Court, kavali, dated 10-06-2003, while the civil revision petition is directed against the order in E. A. No. of 2007 in E. P. No. 24 of 2006 (34 of 2006 ?) in O. S. No. 42 of 1999 of the same Court, dated 08-06-2007.

(2.) O. S. No. 42 of 1999 was filed for recovery of Rs. 2,49,302/- with interest and costs on the basis of a mortgage, dated 26-12-1991 for Rs. 80,000/- agreed to be repaid with interest at 18 per cent per annum with triennial rests. The mortgage of the plaint schedule property was not redeemed and as no payment was made in spite of demands, the suit was filed for recovery of principal with the contractual interest (triennially compounded) by sale of the mortgaged property, if not redeemed within the time to be fixed by the Court, along with future interest from the date of the suit till realization and costs.

(3.) THE suit was resisted contending that only Rs. 30,000/- was paid under the mortgage and the balance of Rs. 50,000/-was not paid on the next day as promised or at any time thereafter. The recited interest is invalid and ultra vires and only simple interest without rests can be claimed. The interest claimed is usurious, excessive, arbitrary and capricious and there was no notice prior to the suit. The defendant expressed his readiness to pay Rs. 30,000/-with simple interest, if the rest of the claim were to be dismissed with costs.