Madras High Court
Nityananda Patnayudu And Ors. vs Sri Radha Cherana Deo And Ors. on 5 February, 1897
Equivalent citations: (1897)ILR 20MAD371
JUDGMENT
1. There is nothing in the document to indicate that the parties did not intend that interest should be paid after the expiration of the eight years, within which the principal was to be re-paid, and we must, there¬fore, hold, having rogard to the ordinary expectations of parties who enter into transactions of this kind, that it was the intention of the parties in this case that interest should continue to be paid until the liquidation of the debt. This is in accordance with the principles laid down in the recent Privy Council Case, Mathura Das v. Baja Narindar Bahadur Pal L.R. 23 I.A. 138 which is now the authoritative guide on the question of post diem interest
2. We must allow the appeal with costs in both Courts and modify the decree by allowing interest at the rate of 18 per cent, from the date of default up to 16th April 1888, and thereafter at 9 per cent, per annum up to the date of the lower Court's decree, and further interest on the whole amount at the rate of 6 per cent, till payment. Credit should be given for the amount paid towards interest by the defendants as found by the District Judge. There will be the usual order for sale in default of payment within six months from this date.