NAND RAM Vs. BHUPAL SINGH

JUDGEMENT

(1.) This appeal arises out of a suit brought by the plaintiff appellant to enforce a mortgage, dated the 8th February, 1888, for Rs. 80, executed by Bahadur Singh, ancestor of the defendants Nos. 1--5. The rate of interest stipulated for in the mortgage deed is Rs. 2-4-0 per cent. per mensem, compound interest, with half- yearly rests. The plaintiff alleged that in accordance with the terms of the mortgage the total amount due to him exceeded Rs. 17,000, but he claimed to recover Rs. 2,500 only.

(2.) The court of first instance was of opinion that the mortgage was made for the payment of Government revenue, but that it had not been established that there was any necessity for borrowing money at the high rate provided for in the mortgage deed. That court made a decree for simple interest at the rate of 18 per cent, per annum, and the total amount decreed by it was Rs. 432-1-0, that is, more than five times the principal amount borrowed.

(3.) The plaintiff appealed and the defendants filed objections under Order XLI, Rule 22, of the Code of Civil Procedure. The lower appellate court in a somewhat sketchy judgment came to the conclusion that no undue influence had been exercised on the mortgagor and varied the decree of the court of first instance and allowed simple interest at the rate of Rs. 2-4-0 per cent, per mersem, that is, Rs. 27 per annum.