AJODHYA PRASAD SINGH Vs. RAMGULAM SAHU

JUDGEMENT

(1.) The plaintiff who is the respondent in this case obtained judgment against the defendant-appellant for the sum of Rs. 32,634.6-0 on a hand-note dated 24 May 1931. This hand-note was signed by the defendant in renewal of a previous hand- note of 7 June 1928, and that in turn was a renewal of a former hand-note of 1925 which again was in renewal of a hand-note, dated 10 August 1922.

(2.) The question in this appeal is whether the defendant is entitled to relief under the Usurious Loans Act which the Judge in the Court below has declined to give him. There is a cross-appeal with regard to interest pendente lite and interest after the date of the suit with which I shall in a moment deal.

(3.) Briefly stated the facts are these. A sum of Rs. 10,000 was borrowed by the defendants in the year 1922, a hand-note was signed and interest under the hand- note was at the rate of 1 per cent, per mensem. In 1925, the former hand-note was renewed by the execution of another hand-note in which it was stated that a sum in excess of the principal and interest on the former hand-note was due. This was made up by the plaintiff charging the defendants compound interest and not simple interest according to the former hand-note. Again in 1928, there was a renewal of the hand-note of 1925 and again compound interest and not simple interest was charged. Then we come to the hand-note on the footing of which judgment has been obtained in this case, that is to say, the hand-note of 1931.