Stone, J.

1. This appeal raises a simple point in connection with a chit fund transaction. The Subordinate Judge has treated a certain clause in a mortgage bond as a penalty clause and has varied its terms in favour of the defendants. The question is whether he was right in so doing. The examination of the point is to be found on page 16 of the printed pleadings under the heading of the 4th issue. The learned Judge does not refer to any cases. He does not definitely give the reasons why he considers that the clause in question is penal but he puts it on the following ground.

2. "As the plaintiffs are mere stakeholders who have merely to collect the instalments at stated intervals and as they do not require the entire amount from the first defendant for distribution among the share-holders at once, the ends of justice will be met with in this case if a decree is passed for the instalments that are overdue on the date of the plaint with interest at 18 percent. per annum on the amount of each instalment from the date of default to the date of the plaint as provided for in the bonds."

3. The material facts are as follows:

4. The plaintiffs are the stake-holders of a chit fund. The