ANNADAMOYI DEBI Vs. SAUDAMINI DEBYA

JUDGEMENT

(1.) The only question involved in this appeal is, whether the plaintiff-landlord is entitled to interest tip overdue instalments at the rate of 75 per cent, per annum.

(2.) The Court of Appeal below has found that interest at 75 per cent, is an unusual and exorbitant rate and that it was an unconscionable bargain at its inception. It accordingly followed simple interest at 12 1/2 per cent, per annum.

(3.) The plaintiff has appealed to this Court and it is contended that as the kabuliyat was executed in May 1882 before the passing of the Bengal Tenancy Act, the defendant is liable to pay interest at the rate stipulated in it.