GHEESA LAL Vs. MOLIA

JUDGEMENT

(1.) This is an appeal by Gheesa Lal against the decree of the District Judge of Nagaur. The appeal is only with respect to interest and the appellant has raised four points.

(2.) The Khata on the basis of which the suit was filed carried interest at 24 per cent per annum. The Court has however, decreed interest at the rate of 12 per cent per annum and the first contention of the appellant is that he should be allowed interest at the contractual rate. Secondly it is being urged that the Court has miscalculated the amount of interest even treating the rate as 12 per cent, and that this should be corrected. Thirdly it is said that the Court has given no reason for not allowing pendente lite interest and this Court should, therefore, grant pendente lite interest. Lastly, it is contended that future interest should also be allowed as the Court below disallowad future interest by not saying anything about it.

(3.) The main question in this appeal is whether the Court below was justified in reducing the rate of interest from 24 per cent, per annum to 12 per cent, per annum. In this connection the law applicable is contained in Section 5 of the Marwar Relief of Indebtedness Act 1941. That section authorises; the Court, if it has reason to believe that the interest is excessive or that the transaction was as, between the parties substantially unfair, to re-open the transaction and relieve the debtor of all liability in respect of it. Section 5(2) (a) lays down what 'excess' means and Section 5(2)(b), (c) and (d) give the principles on the basis of which the Court has to consider whether the interest is excessive or the transaction was unfair. Then comes Section 5(2)(e) which lays down that the Court shall deem interest to be excessive if on secured loans it exceeds twelve per cent, per annum simple interest.....and if on unsecured loans it exceeds eighteen and three quarter per cent, per annum simple interest.....