RAMSAROOP MAHTO Vs. MATHURA PRASAD SINGH

JUDGEMENT

(1.) This is a defendants' second appeal arising out of a suit based on a simple mortgage bond. The bond had been executed on 18-9-1925, by defendants 1 and 2 and by their deceased father Dhana Mahton in favour of the plaintiffs to secure a loan of Rs. 2250, which was to bear interest at Rs. 1-4-0 per cent. per month with yearly rests. It was stipulated that the entire principal amount with interest would be paid by the mortgagors on the 30th of Baisakh 1333, but only a sum of Rs. 400 was paid in Baisakh 1333 and subsequent to that, other paywents were made, all of which were endorsed on the back of the bond, the last payment haying been made on 24-4-1932. All these payments have been credited by the plaintiffs towards interest, and they have sued for the recovery of the principal amount only, which is Rs. 2250.

(2.) The defendants resisted the plaintiffs claim on the ground of limitation, and they further contended that, according to the provisions of the Bihar Money-lenders Act, they were entitled to have the account re-opened, and that, if the account was re-opened, the plaintiffs would be found to have been overpaid.

(3.) The Court of first instance negatived the plea of limitation, but it held that the plaintiffs were not entitled to claim interest at a higher rate than 9 per cent. per annum. That Court credited the payments made by the defendants towards the principal and interest calculated at the rate of 9 per cent. and found that the plaintiffs had realised their entire dues besides Rs. 50 in excess.