AUSERI LAL Vs. RAJA MANESHAR BAKHSH

JUDGEMENT

(1.) The original plaintiff Auseri Lal was the head of a joint Hindoo family. He is now deceased, and the present appellants, as the surviving members of the family, have been substituted for him on the record. Auseri Lal on behalf of the family, formerly carried on the business of a banker and money-lender in the District of Sitapur in Oudh And in the course of his business he had, previously to the transactions which are the subject of this appeal, lent money to the respondent, who was and is the Talukdar of Mallanpur in the same District.

(2.) In the year 1886 the respondent, being then largely involved in debt, was, on his own application, declared by the Chief Commissioner of Oudh a disqualified proprietor under the provisions of the Oudh Land Revenue Act, 1876, and his property was placed under the charge of the Court of Wards on the 12 August in that year. The respondent's property remained under such charge until some time in the mon July, 1898, when it was released to him, and he resumed possession. While the estate was under its charge the Court of Wards made an allowance of Rs. 1,250 per mensem to the respondent for the maintenance of himself and his family.

(3.) On the 4 February 1889 the respondent, without the sanction of the Court of Wards, borrowed from Auseri Lal the sum of Rs. 4,500, and executed in his favour a bond which was duly registered for that amount stipulating that he would repay the amount in two years with interest at the rate of Rs. 2 per mensem payable half-yearly out of his allowance of Rs. 1,250 per mensem, and stipulating further that in case default was made in the payment of interest he would pay compound interest at the same rate until the amount secured by the bond was fully paid off and satisfied. The respondent did not pay any sum either for principal or interest due on this bond, and after it had become due negotiations were apparently opened by his officers on his behalf with the plaintiff for a further advance at a lower rate of interest. In the result an account was settled between the respondent and Auseri Lal of the amount due on the bond for Rs. 4,500, and it was found that that sum with interest and compound interest at the rate of 2 per cent, per mensem, up to the 13 day of January 1892, came up to Rs. 8,750. On the last-mentioned date Auseri Lal advanced to the respondent the further sum of Rs. 1,250 and the latter without the sanction of the Court of Wards executed in favour of the former a bond, also registered, for the total sum of Rs. 10,000, stipulating that he would repay the amount in seven years with interest at the rate of Rs. 1.8 per cent per mensem payable half-yearly, and stipulating further that in default of payment of interest on due dates he would pay compound interest at the same rate, and that he would pay interest and compound interest on the amount secured by the bond until it was fully paid off and satisfied.