B. P. JEEVAN REDDY, J.

( 1 ) PLAINTIFFS are the appellants. The only question that arises in this case is about interest awarded by the trial Court. The suit is based upon two mortgages, Exs. A-1 and A-3, dated 25-11-1964 and 4-4-1966 respectively. Under the first mortgage, a sum of Rupees 6,000/- was borrowed and, under the second mortgage a sum or Rupees 8,000/- was borrowed. The stipulations in both the mortgages are identical, except the rate of interest. The first mortgage provided that the entire loan amount shall be repaid within a period of one year with 12 per cent per annum interest simple. It, however, provided that if interest is not so paid, the mortgagor shall be liable to pay interest on interest, i. e. , compound interest. Such compound interest was payable in case of default, every year. In the second mortgage, interest stipulated is Rs. 1-15 Ps. per cent per month, i. e. , 13. 18 per cent per annum simple interest (with identical stipulations ). On the ground that the defendants have failed to repay the principal or the interest, except a small amount, the present suit was instituted for recovery of a sum of Rs. 32,462. 00. The suit was instituted in the year 1974.

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