CHATARGOON SAO Vs. BABU RAMLAL

JUDGEMENT

(1.) This is a defendants appeal from a decree of the learned Sub-ordinate Judge of Palamau decreeing the plaintiffs claim in a mortgage suit. The plaintiffs brought the suit out of which this appeal arises for the enforcement of a mortgage dated 19 March 1932. The learned Subordinate Judge held that consideration had passed and that the mortgage had been duly executed according to law. He accordingly decreed the claim. The defendants were, the members of a family which carried on a business in selling cloth, yarn etc. The plaintiffs had from time to time sold to the defendants cloth and yarn, and according to the plaintiffs an account was struck in March 1932 which showed that there was due from the defendants to the plaintiffs a sum of Rs. 6000 in respect of cloth and Rs. 2700 in respect of yarn etc. This statement of account was actually signed by defendant 2.

(2.) On 19 March 1932, defendants 1, 2, 3 and Hussaini executed the mortgage deed now sued upon. Defendant 2 executed the deed on behalf of himself and as guardian of defendant 8, and Hussaini, now dead, executed the document on behalf of himself and as guardian of defendants 4 and 5. Defendants 6 and 7 apparently were born after this mortgage deed was executed. The deed was to secure the sum of Rs. 8700 which was the balance due upon the cloth and yarn transactions between the parties.

(3.) The bond was an instalment bond and interest was at the rate of six per cent, per annum. It was provided however that in case of default of two instalments interest should be payable at the rate of twelve annas per cent, per month compoundable yearly. Nothing was paid by the defendants in respect of the principal and interest due under this mortgage, and on 21 May 1935 the present suit was brought. In the lower Court the defendants denied that any sum was due from them to the plaintiffs at the date of the mortgage, and suggested that they had been coerced into executing the mortgage.