RAM DAS Vs. SAIYID MUHAMMAD SAYEED KHAN

JUDGEMENT

(1.) This is an appeal by the plaintiffs against the dismissal of their suit on a deed dated the 17 of July 1901 on the ground that it was time barred. We have been taken through the terms of the deed in question. We find that the executant, Muhammad Raza, executed the deed for a consideration of Rs. 1,000 and agreed to pay interest at the rate of 24 per cent. per annum. He covenanted to pay the interest year by year and the principal within three years of the date of execution, and in case of default of the payment of the annual interest he empowered the mortgage without waiting for the expiration of the period fixed for payment of the principal to realise the amount due for the principal and interest from the hypothecated property. He also covenanted that so long as the principal remained unpaid interest at 24 par cent, per annum would accrue and that interest at this rate should be payable from the date of default to the date of the payment.

(2.) We can only interpret these portions of the deed to mean that the privilege of defending payment of the principal to the 17 of July 1904 was conditional on the punctual payment of the annual interest and that the whole amount, principal and interest, became due on the 17 of July 1902 in default of payment of the interest for the first year.

(3.) On the facts, no interest was paid at all, so the cause of action arose in our opinion on the 17 of July 1902.