C. Vaidyanatha Rao – Appellant
Versus
Kandappa Chetty – Respondent
1. This appeal arises out of an award in a land acquisition case. The immediate point before the Lower Court was what proportion of the amount awarded should go to certain mortgagees of the appellant in discharge of their mortgage for Rs. 10,000, dated 11th July, 1912. The mortgage bore interest at 7 1/2 per cent. per annum, but on default of payment of principal or interest, the rate of interest was to be increased to 9 per cent. It is admitted that there was default. In dealing with the point the Lower Court has shut out evidence of an agreement alleged by the appellant whereby his mortgagees agreed "to waive the default in the payment of interest and to waive their right in future also to claim enhanced rate of interest at 9 per cent. per annum and to receive payment of interest throughout only at 7 1/2 per cent. per annum". It was further alleged that in pursuance of this agreement certain renderings of account, Exs. I and II in C.M.P. No. 5514 of 1929, had been submitted by the mortgagees to the mortgagor calculating interest at the 7 1/2 per cent. rate only. The District Judge held that proof of such an agreement was inadmissible under Section 92 of the Indian Evidenc
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