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S.R Rajagopalaswami Naidu vs Bank Of Karaikudi Ltd on 22 September, 1970

In S. Rajagopalaswami Naidu v. The Bank of Karaikudi Ltd. , the husband had mortgaged his property with the Bank and agreed to pay Rs. 5000/- within a specified date and balance was to be paid together with interest at the rate of 10-1/2%. It was further agreed that if the mortgagor failed to pay the interest periodically and regularly he would be liable to pay interest at the rate of 12% per annum from the date of such default and further if he failed to pay the entire amount stipulated within two years he would have to pay the whole amount together with interest at 3-1/2% per annum. It was held that in the light of the provisions of the mortgage deed and the circumstances that the rate of 12% is unfair and penal, the order was passed that the interest should be calculated at the rate of 10-1/2% which was the original contractual rate, from the date of the mortgage to the date of the preliminary decree and thereafter the interest shall be payable as directed by the trial court at the rate of 6% per annum till realisation.
Supreme Court of India Cites 7 - Cited by 11 - A N Grover - Full Document
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