RAJA SARDAR NARAIN AND OTHERS versus RAJA SARDAR NARAIN AND OTHERS.

RAJA SARDAR NARAIN AND OTHERS versus RAJA SARDAR NARAIN AND OTHERS.

Special Judge is bound to follow s. 14(4)(a) of the U.P. Encumbered Estates Act, limiting interest recoverable to the principal sum due on the date of application, even where there has been a decree by a civil court in respect of the loan; the existence of a prior decree does not negate applicant's statutory entitlement.

Parties
Appellant: Sardar Samsher Singh; Respondents: Raja Sardar Narain & Others
Jurisdiction
India
Judgment Date
05 August 1960
Procedural Posture
Civil Appeal / Appeal From Judgment and Decree Dated September 26, 1946, of the Former Chief Court of Avadh at Lucknow, in First Appeal No. 7 of 1940
Outcome
Appeal allowed
Legal Topics
Reduction of Interest, Interpretation of U.p. Encumbered Estates Act, 1934, S. 14(4)(a)
Debt Relief Mortgage Law Reduction of Interest Interpretation of U.p. Encumbered Estates Act, 1934, S. 14(4)(a)

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Parties

Sardar Samsher Singh

Appellant

Raja Sardar Narain & Others

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment and Decree Dated September 26, 1946, of the Former Chief Court of Avadh at Lucknow, in First Appeal No. 7 of 1940

Legal Issues

  1. 1 Whether s. 14(4)(a) of the U.P. Encumbered Estates Act, 1934, applies so as to limit interest recoverable on a mortgage decree to the principal sum due on date of application under the Act
  2. 2 Whether findings in earlier civil court decree inconsistent with s. 14(4)(a) should be rejected by Special Judge under s. 15

Ratio Decidendi

Special Judge is bound to follow s. 14(4)(a) of the U.P. Encumbered Estates Act, limiting interest recoverable to the principal sum due on the date of application, even where there has been a decree by a civil court in respect of the loan; the existence of a prior decree does not negate applicant's statutory entitlement.

Court Disposition

Appeal allowed

Orders

  • Decrees of courts below set aside
  • Substituted a money decree for rupees two lakhs for loan with permissible interest, plus Rs. 4,314-2-9, Rs. 51-3-0, and rupee one on account of costs, i.e., for a total sum of Rs. 2,04,366-5-9 with proportionate costs with interest pendente lite and future interest at the rate of 4 per cent per annum simple from...