TRIMBAK TUKARAM NAIK Vs. BHAGCHAND

JUDGEMENT

(1.) The mortgage-bond on which this suit was brought shows that the sum of Rs. 203-2-9 was paid by the debtor up to 9 July 1884, as the payments to that amount are endorsed on the bond. It must be held, then, that the plaintiffs have condoned any default made by defendants in payment up to that date.

(2.) The balance due on the bond is Rs. 46-13-3. The provision that on default interest at 24 per cent, should be charged from the date of the transaction is clearly of the nature of a penalty. The most the plaintiffs are entitled to is Rs. 46-13-3 plus an equivalent sum according to the principle of damdupat by way of interest.

(3.) We amend the decree of the lower Appellate Court by ordering that defendants be allowed to redeem the mortgage on payment to plaintiffs of Rs. 93-10-5 within sis months from this date. Costa of this appeal on the plaintiffs.