PRALHAD RAMCHANDRA DESHPANDE Vs. GENDALAL MOTILAL

JUDGEMENT

(1.) THIS judgment will also dispose of First Appeal No. 24 of 1943. These are cross-appeals arising out of a suit on foot of a mortgage.

(2.) THE mortgage-deed (Ex. P-1) was executed by Pralhad Ramchandra Deshpande, defendant 1 and his son Shankar Pralhad Deshpande, defendant 2 on 7-4-1929 as security for a sum of 1,10,000 which, according to the recitals in the deed, consisted of Rs. 68,800 paid by the mortgagee to various creditors of the mortgagors, Rs. 35,681 found due on a bond for Rs. 30,000 (EX. P-3) executed by defendant 1 in favour of the mortgagees on 27-4-1927, and Rs. 5519-0-0 paid in cash at the time of registration. The debt was to carry compound interest at 9 per cent, per annum and was repayable in annual instalments varying in amount from Rs. 5500 for the first payable on 31-3-1930 to Rs. 12,000-0-0 for the last payable on 28-3-1941. Defaulted instalments were to carry compound interest at the rate of 12 per cent per annum, and in case of two defaults the entire amount was to become exigible. The security consisted of 13 villages in the Nagpur, Wardha and Chanda districts and a house in Nagpur town.

(3.) THE contention is that Prabhakar, as the nephew of defendant 1 and the cousin of defendant 2 by adoption, is not bound by the mortgage executed by them. The other defendants are transferees of small portions of the mortgaged property, and as regards them there is now no dispute. ****