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TMI Blog1957 (7) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... r promissory note for ₹ 4,000/- executed on 25-9-1946. The plaintiff claimed ₹ 6,113-8-9 as being the amount of principal due on the promote and claimed by way of interest a sum of ₹ 1461-0-6, calculated at Re. 1-4-6 per cent, per month with yearly rests. The defendant admitting the "execution of the suit promote only disputed the claim as regards interest contesting that the rate of interest was excessive and the whole transaction was substantially unfair. She stated that interest at 9 per cent, per annum simple was the most reasonable rate of interest to which the plaintiff was entitled. The only issue in the case therefore was as to whether the plaintiff was entitled to the interest claimed by him. The learned Sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to rebut such presumption by showing that in the peculiar and special circumstances of the case, the interest was but fair and reasonable. When the transaction is found to be unfair the Court is empowered to grant relief to the debt under S. 3 (1) of the Usurious Loans Act. The sole point to be determined therefore is as to whether the interest in this case court be regarded as being excessive. There can no general rule with regard to the rate of interest to be charged. It will depend upon the nature of the particular transaction and other circumstance? appurtenant to such transaction. Learned counsel for the appellant argument that under no circumstances could a rate Re. 1-4-6 compound be regarded as being a for rate of interest, and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. It might be observed that in the above their Lordships were disposed to reduced rate of interest because there was ample security for the loan. The other case referred by the learned Judges is Ziaul Rahman v. Mt. Ganga Dei, 1939 All LJ 40 : (AIR 1939 A (C). That was also a case of loan supported by a hypothecation bond. A subsequent soon of the Madras High Court of the Justice and Venkatrama Iyer J. in Paramasiva Mudaliar v. D. Rangachariar, 1954 1 Mad 422: AIR 1954 Mad 764 (D), may be referred to. Here also the case was of a loan on a mortgage. The learned Judges held that in view if me special circumstances of the case interest of 10 per cent, compound was not unreasonable. They adverted to the circumstances of the case, such as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for consideration. Therefore having regard to the particular circumstances of this case we do not think we can justifiably say that the interest that has been charged is excessive. 6. The next argument that was advanced on behalf of the appellant was that the estate of the judgment-debtor was notified to be taken over by the Government on 7-9-1950 and that under the provisions of the Madras Estates (Abolition and Conversion into Ryotwari) Act, 1948, no creditor would be entitled to claim forest at a rate more than 6 per cent, per annum. On the strength of this legislation it argued that in any event the decree-holder as not entitled to any interest in excess of 6 per cent, from the date of notifying to the date of deposit. In this connec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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