KHAGARAM DAS Vs. RAMSANKAR DAS PRAMANIK

JUDGEMENT

(1.) This is an appeal by the plaintiffs to enforce a mortgage security executed in their favour on the 9th June 1904. The history of the transactions between the parties prior to the mortgage may be briefly narrated. On the 24th July 1895, the plaintiffs advanced to the defendants a sum of Rs. 375 to carry interest at 24 per cent, per annum. On the 25th January, 1899, the defendants gave the plaintiffs a bond for Rs. 600 in renewal of the promissory note of the 24th July 1895. The bond carried interest at the rate of 75 per cent, per annum. In 1901, the plaintiffs sued to recover their money. The Court held that the plaintiffs should not be allowed interest at 75 per cent, per annum, and made a decree for the amount named in the bond with interest at 24 per cent, per annum. The amount decreed was Rs. 1,060 and this carried interest at 6 per cent, per annum till realization. On the 8th June 1903, the plaintiffs advanced to the defendants a sum of Rs, 300 on a promissory note, which carried interest at one parties per rupee per day, that is, at the rate of 570 per cent, per annum. On the 9th June 1904 accounts were taken between the parties, and it was found that that. 1,230 was due on the decree and Its. 2,010 on the promissory note. The creditors, however, agreed to receive Rs. 100 in cash and an instalment mortgage bond lor Rs. 1,500. The mortgage instrument provided for the payment of this sum of Rs. 1.500 in ten instalments spread over five years, with the condition that it default was made in the payment of one or two instalments, the creditors would be at liberty to realize the whole sum due, together with interest, thereon at 75 per cent, per annum from the date of default.

(2.) Ample security was given for the sum named, and the plaintiffs accepted the instalment bond. They then commenced this action on the 5th July 1909 on the allegation that only Rs. 200 had been paid by the debtors, that default had been made in the payment of one instalment, and that they had become entitled to realize the entire sum secured less the amount paid, with interest thereon at 75 per cent, per annum from the date of default.

(3.) The claim was for Rs. 1,300 as principal money and Rs. 3,949-14 as interest thereon from 15th June 1905 to the date of the institution of the suit. The substantial defence was that the claim for interest was not enforceable. The Subordinate Judge has accepted this view, and has made a decree for Rs. 1,300 with interest thereon at 24 per cent per annum from 15th June 1905 till the date of realization. The plaintiffs have appealed to this Court mid have contended that interest should have been decreed at 75 per cent, per annum. On behalf of the appellants reference has been made to the cases of Sunder Kumar Koer v. Sham Krishen (1905) I. L. R. 34 Calc. 150., Miajan v. Abdul (1906) 10 C. W. N. 1020., Kirti Chunder v. Atkinson (1906) 10 C. W. N. 640., Umesh Chandra v. Golap Lal (1903) I. L. R, 31 Calc. 233., Mackintosh v. Crow (1388) I. L. R. 9 Calc. 689., Proyag v. Shyam Lal (1903) I. L. R. 31 Calc. 138.