NAWAL KISHORE PRASAD SINGH Vs. GANGA PRASAD SINHA,

JUDGEMENT

(1.) This appeal arises out of a suit brought to enforce a mortgage bond dated 5th February 1912 executed by Palat Singh, now deceased, for himself and as guardian of his brother's minor son, defendant 1. The consideration of the mortgage is stated to be Rs. 1,171 and the bond provides for interest at Re. 1-4-0 per cent per month with six-monthly rests. The plaint alleges that the money was taken to pay off an ancestral debt due to the mahajans and also to meet the necessary expenses of the members of his joint family.

(2.) The consideration was repayment of the simple bond for Rs. 300 executed by Bijuli Singh, grandfather of Palat Singh and great-grandfather of defendant 1., dated 9 March 1905, with interest. At the time of execution of the mortgage bond in suit the amount due under this bond after deducting realizations made in the meantime amounted including, principal and interest to Rs. 696-14-6. It bears an endorsement of repayment of this amount and the Subordinate "Judge has held that necessity is proved for borrowing to the extent of Rs. 700. He held that it was not proved that there was any necessity for borrowing the remaining Rs. 471 for family purposes and that it was not proved that there was necessity to borrow at so high a rate of interest with compound interest which has swelled the total claim to Rupees 10,887-4 0.

(3.) He allowed interest at the same rate as the interest on the old bond, that is to say Re. 1-9-0 per cent per month simple, and passed a decree for Rs. 700 principal with simple interest at that rate; total Rs. 2 925 with costs Rs. 531-7-0. In appeal it is contended that the lower Court should have held that there was necessity for "the transaction as a whole" and a reference is made to Sri Krishna Das V/s. Nathu Ram which however does not seem to be directly in point, being a suit to set aside an out and out sale. In Hunoomanpersaud Pandey V/s. Mt. Babooee Munraj Koonwaree (1854-57) 6 MIA 398 it was said the validity, force and effect of the bond, as to all and each of the sums, of which the sum thereby purporting to be secured is composed, depend on the circumstances under which the sums were respectively so advanced regard being, had also, in so far as may be just, to the circumstances under which the same were respectively borrowed.