Judgement

HIDAYATULLAH, : In this appeal by special leave against the judgment and decree of the Punjab High Court, dated October 15, 1959 the only question is whether, in the facts to be stated presently, the High Court was right in reducing interest in a preliminary mortgage decree, dated August 12, 1953 by applying Ss. 5 and 6 of the Punjab Relief of Indebtedness Act which were extended to Delhi on June 8, 1956.

2. On January 17, 1946 Hazarilal (predecessor of respondents 1to 5) and one Jagat Narain (respondent 6) executed a simple mortgage-deed for Rs. 50,000 with interest at 9 per cent per annum or in default of payment of interest for 3 months at Re. 1 per cent per month for the period of default. As the mortgagors made default in payment of interest and also did not pay anything out of the mortgaged amount a suit was filed for enforcement of the mortgage by sale of properties. The claim was for Rs. 76,692-9-8, by calculating interest at 9 per cent per annum for the first 3 months and at 12 per cent per annum till institution of the suit and allowing credit for Rs. 14,000 as repayment. The defendants admitted the mortgage and the consideration but pleaded that the rate of inter