HARIKISHAN Vs. SYED DAWAR ALI KHAN

JUDGEMENT

(1.) This is an pppeal under section 47 of the Hyderabad Jagirdars Debt Settlement Act No. XII of 1952 (hereinafter called the Act) against the award of the majority in which they have computed the amount due from the debtor on account of principal and interest. One of the members of the Board disagreed with respect to the principles applicable in computing the accounts under the provisions of the Act. In so far as the amount of principal found due is concerned, there is no dispute between the parties. It is admitted that the amount due on account of principal is Rs. 3,436 and it is further admitted that no amounts have been paid in discharge of the principal amount. The only question is what are the principles to be be aplied in determining the interest due on the date of the application.

(2.) The majority have held that any payments made towards the interest prior to the date of the application, ought not to be taken into account in computing the interest and principal on the date of the application, while the Third Member who dissented from this view, thought that it should be taken into account and the principal and interest should only be computed on the date of the application after appropriating the amounts paid. As we have already stated, it is the admitted case of the parties that no amounts have been paid towards the principal. We are, therefore, to consider what principles are applicable in computing the accounts of principal and interest and in appropriating the amounts already paid in respect of these accounts, so as to determine the amount due towards principal and interest on the date of the application by the debtor.

(3.) Under tae Act, a debtor is given power to apply to the Debt Settlement Board for settlement of h;s debts. The procedure for making the application, issue of notice to the creditor, framing of preliminary issues, transfer of pending suits, appeals and applications to the Board and taking of accounts as well as examining the creditor and the debtor, the passing of the award and the appeal against awards, have been stated in Chapter III, sections 11 to 51. The relevant section applicable to the facts of this case which deals with the mode of taking accounts is section 28 which is in the following terms :-