GANPAT TUKARAM MALI Vs. SOPANA TUKARAM MALI

JUDGEMENT

(1.) The question submitted to this Full Bench runs as follows :- A suit is brought after demand made on a promissory note payable on demand. The note is silent as to interest and specifies no place for payment. Is interest recoverable? If so, from what date and at what rate?

(2.) I will first consider whether interest can be claimed under the Negotiable Instruments Act, 1881, This depends primarily on two points arising on the construction of Section 80, viz,, (1) whether the section includes cases where as here no interest at all is mentioned in the instrument, or whether it is confined to cases where interest is mentioned in the instrument, but not the actual rate, and (2) what is the date at which the amount due on the instrument ought to have been paid by the party charged. It is important to observe that the party charged in the present case is the maker, and not an indorser. Throughout this case therefore we are dealing only with the liability of a maker of a promissory note.

(3.) As regards the first point the section provides that "when no rate of interest is specified in the instrument, interest on the amount due thereon" shall be calculated, etc. On the true construction of this section I would hold that if no interest is mentioned at all, then "no rate of interest" is mentioned, and consequently the section applies, This, I think, is the ordinary meaning of the language used, and I see no reason to cut down what seems to me its plain meaning. In fact, cases where interest is mentioned, but not the rate, are rare. Cases, on the other hand, where no interest is mentioned at all, are quite common. It is true that Section 79 deals with cases where interest at a "specified rate" is made payable in the instrument. But I do not think that it follows from this that Section 80 ought to be construed as referring only to cases where interest at an unspecified rate is mentioned. The Legislature intended, I think, by e, 80 to provide for all the other cases generally.