SUBHADRABAI Vs. MAHOMEDBHAI IMROWJI

JUDGEMENT

(1.) This is an originating summons taken out by that plaintiff and the second defendant (purchasers) for the determination of the question whether the first defendant (vendor) is entitled to interest on the balance of the purchase money from February 18, 1923, as claimed by him.

(2.) On January 18, 1923, the plaintiff and the second defendant purchased certain immoveable property at an auction sale held by the first defendant as mortgagee of the property for Rs. 1,19,500 subject to certain conditions of which a print is Exh. A herein. On the same day the purchasers paid Rs. 30,000 as earnest. The sale was to be completed on February 18, 1923.

(3.) After the date of the agreement for sale, the purchasers attorneys took search of the register of assurances when they discovered that the property was subject to a mortgage dated August 11, 1873, but there was no reconveyance. The amount of the mortgage was Rs. 2,000; the parties to the mortgage Were Hindoos; and, having regard to the rule of damdupat, the mortgagee would not be entitled to more than Rs. 2,000 for interest.