UMESH CHANDRA KHASNA VIS Vs. GOLAP LAL MUSTAFI

JUDGEMENT

(1.) The plaintiff in this case brought a suit on a mortgage bond dated 9 Chaitro 1294 B.S. to recover from the defendants the sum of Rs. 19,749. The original mortgage debt was Rs. 1,999, but by means of compound interest and interest it had swelled up to the sum claimed by the 23 Sravan 1307, the date on which the suit was instituted. The due date under the bond was the month of Aswin 1295 B.S.

(2.) The defendants pleaded that the claim of the plaintiff for interest was unjust, excessive and illegal; that they had never agreed to pay compound interest, and that the plaintiff could only recover the principal due under the bond with simple interest thereon up to date.

(3.) By the bond the defendant stipulated to pay interest at Re. 1-12 per cent. per mensem and as security for the repayment of the loan they mortgaged lot Balahai, towji No. 199, in the Dinajpur Collectorate. The bond further contained the following clause--"and so long as the said amount is not wholly repaid we shall pay interest at the said rate, and if we do not pay the amount of interest within the year, then from 1 Bysack of the next year that amount of interest shall be considered as principal, upon that interest shall run at that rate."