RASHIK LAL Vs. RAM NARAIN

JUDGEMENT

(1.) On the 26th of August, 1898, the defendant, Rashik Lal, executed a conditional sale in favour of Cheda Lal, the predecessor in interest of the plaintiffs, to secure a sum of Rs. 5,000. He stipulated that he would pay the principal and interest on Kuwar Sudi Puno, Sambat 1956 (i.e., 18th October, 1899), and would redeem the zamindari property, and that if he failed, the property should be deemed to have been sold, and the consideration was acknowledged to have been received as follows:

(2.) The plaintiffs brought an action for the recovery of Rs. 1,000 principal and Rs. 1,790-1-3 interest, or for possession of the property sold conditionally. They alleged that the sum of Rs. 4,000 had not been paid.

(3.) The pleas in defence were that no consideration for the mortgage was paid by Cheda Lal ; that the mortgage was obtained by fraud ; that compound interest was barred by time and that the plaintiffs were liable to pay damages in consequence of the loss suffered by the defendant on the ground of non-payment of Rs. 4,000. The suit was decreed by the court of first instance. The defendant appealed and contended that the mortgage deed was obtained by fraud ; that the sum of Rs. 1,000 sued for was not advanced ; that the mortgage contract was rescinded by the defendant; that the mortgage was unenforceable because of its breach by Cheda Lal ; that compound interest was not to be awarded, and that the defendant was entitled to damages caused by the non-payment of Rs. 4,000.