JOGENDRA NATH BANERJEE Vs. KHODA BUKSHA BISWAS

JUDGEMENT

(1.) This appeal arises out of a suit upon a registered bond for a money debt bearing compound interest at 18 per cent, per annum.

(2.) The Court of first instance was of opinion that the stipulation as to the payment of compound interest was a hard and unconscionable bargain, though not penal. It allowed simple interest at 18 per cent, and directed the decretal amount to be paid in three instalments with costs of the suit, costs to be paid by Jaista 1326, and the principal and interest in two equal instalments in Aswin and Chait 1326.

(3.) On appeal by the plaintiff, the learned District Judge held that there was no plea of undue influence or fraud, and that the plaintiff would, under ordinary circumstances, have been entitled to get the stipulated rates of compound interest, having regard to the decisions of the Judicial Committee in certain cases referred to in the judgment, but he disallowed the compound interest on the grounds that the plaintiff had subsequently agreed not to charge compound interest and that he had accepted Rs. 65-10 as one of the instalments, after the decree. He accordingly upheld the decree of the Court of first instance and dismissed the appeal.