U M SIVASUBRAMANIA PILLAI Vs. NAGAPPA PILLAI

JUDGEMENT

(1.) This appeal arises out of a suit filed by the respondent against the appellant and others to recover Rs. 11,690 together with costs and further interest alleged to be due under a deed of mortgage dated the 24 of April, 1922 executed by the 1 defendant in favour of one Tirumalai Kandaswami Naicken for Rs. 10,000 and assigned by the mortgagee to the plaintiff. The deed of mortgage provides that the principal sum should be paid in two years and there is a default clause. The material portion of the document runs as follows: As I have to pay To you in cash the said mortgage amount of Rs. 10,000 (which is) the balance of the sale amount due to you in the matter of the purchase by me of the said properties from you on this date, I shall pay the interest accruing thereon at the rate of one per cent per mensem from this date, on the 12 Chithrai of each year and shall pay the principal amount in cash on the 24 April, 1924 on which the stipulated period of two years expires. Even if there be default on any one of the due dates in respect of the payment of principal or interest, compound interest will be added on the" principal and interest once in 12 months at the rate of Rs. 1-4-0 per cent per mensem from the date of default, irrespective of other due dates and the interest accruing and the principal will, when required by you, be paid (by me) in cash. Till the entire payment of the principal (which is) this mortgage amount and the interest, the undermentioned properties are put to remain as hypotheca.

(2.) Interest was not paid for the first year as stipulated in the bond and the respondent filed O.S. No. 495 of 1923 on the file of the District Munsif's Court of Udumalpet to recover Rs. 1,226-4-0 which was the interest due for the first year. The plaint in that suit is Ex. I and after setting out the mortgage it states that the amount due is Rs. 1,200 in respect of interest at 12 per cent from the 24 April, 1922 to the 24 of April, 1923, which is the due date for payment of interest. He claims interest on this sum from the 24 April, 1923 till the date of the plaint at 15 per cent evidently under the default clause, and says that the total sum is Rs. 1,226-4-0

(3.) Then follows the statement As there is time for the principal, I shall collect the same afterwards.