SHRIKISHAN Vs. MAHADEO

JUDGEMENT

(1.) THIS is a first appeal by the defendants against the judgment and decree of the Court of Civil Judge, Class I, Betul. The facts which are not in dispute are, these: The defendants borrowed Rs. 4,500/ - from the plaintiff on 1 -5 -1943. They agreed to repay the debt at -12/ - percent per mensem corner pound interest on the 15th May 1945. As a security for the debt the defendants executed a mortgage deed (Exh. P. 3) on the same day in favour of the plaintiff. It is not necessary to describe the property which was mortgaged for the purposes of this appeal. The mortgage deed provided that in the event of default in payment the property was to be foreclosed.

(2.) THE defendants paid Rs. 3,000/ - . The details of payment are shown below: -

(3.) THE defendants admitted the claim to the extent of Rs, 1,500/ - on account of principal and interest for two years 1950 and 1951. The main plea in defence was that the plaintiff, who was a moneylender, had not complied with the provisions of Section 3 (1)(b)of the C P and Berar Money -lenders Act. He had not furnished annual statement of accounts in the prescribed form duly signed by him within one month from the date of Diwali. The statement of accounts was furnished only for the years 1950 and 1951. The plaintiff therefore was not entitled to claim interest in respect of the period during which he failed to send accounts. The payments which the defendants have made purporting to be on account of interest should be appropriated towards principal as the plaintiff did not maintain accounts as required by the Act. Costs should be disallowed. According to the defendants, the rate of interest was excessive.