(1.) This case comes before their Lordships on appeal and cross-appeal. The questions between the parties arose in taking the accounts between mortgagor and mortgagee. The appellant in the principal appeal is the widow and representative of Raja Rameswar Pershad Narayan Singh, the mortgagor and original defendant. The mortgagees, who were plaintiffs in the suit, were the respondents to the principal appeal, and the appellants in the cross-appeal.
(2.) The object of the suit was to enforce payment by sale of the mortgaged properties, of sums of money owing on two mortgage bonds dated respectively the 19 June 1888 and the 15 June 1891. By the earlier bond the principal sum secured was Rs. 4,35,000 with interest at the rate of 14 annas per cent, per mensem, equivalent to 10 1/2 per cent. per annum, and by the first, condition of the bond it was agreed that the interest should be paid every six months, and in case of default the mortgagee should pay interest on interest, at the rate of Re. 1-8 annas per cent. per mensem (equivalent to 18 per cent. per annum); and if the amount of interest be not paid within the year, interest on the aforesaid amount of the loan should run at the rate of Re. 1 per cent. per mensem (equivalent to 12 per cent. per annum) from the date of the execution of the bond, till the day of payment.
(3.) The principal sum secured by the bond of the 15 June 1891 was Rs. 1,65,000, made up as follows: (1) amount due for interest under the first bond; (2) amount due for principal and interest under an intermediate bond dated the 22 February, 1889; and (3) a further sum stated to have been then advanced. The stipulations as to the interest and compound interest are similar to those in the first bond, except that the rate of interest on the principal money was 12 annas per cent, per mensem instead of 14 annas.