BAIJNATH SINGH Vs. LALA MISRI LAL

JUDGEMENT

(1.) This is a defendant's appeal arising out of a suit for recovery of interest. Rana Raj Kumar Lal was indebted to the plaintiffs to the extent of Rs. 60,000 under a promissory note executed by him. Admittedly the whole amount of the principal plus interest due on this promissory note on 28 February 1921 came to Rs. 67,306-13-6. The correspondence which passed between the plaintiffs and the present defendant goes to suggest that the defendant either was in some way responsible for the payment of this money or at any rate agreed to see that the payment was made. The plaintiffs, however, insisted on the immediate payment of the amount due, and the defendant wrote to the plaintiffs to give the Rana more time. The plaintiffs replied saying that they could not wait, as the original rate of interest, viz: 0-8-6% per mensem, was inadequate, and that if the defendant did not reply they would presume that he was agreeable to 9% per annum being charged (p. 16). The defendant replied to this and said that he would accept 7% interest which he would willingly pay (p. 17). He also sent a telegram to the same effect on the same day (p. 18).

(2.) The plaintiffs, however, did not accept this rate, but wired on 17 March 1921 saying: Can t accept below nine per cent: either, pay whole amount or accept terms. If latter pay interest up to February. Wire reply immediately.

(3.) This offer was accepted By the defendant in the following words: Your telegram 17 agree pay Rs. 9 per cent from March send interest account up to February.