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1937 Supreme(All) 34

Dharam Singh – Appellant
Versus
Bishan Sarup – Respondent


ORDER

1. In this case there had been previous dealings between the parties, and there were in existence two hypothecation bonds of 1926 and 1927, part of the amounts due on which were paid off. On 13th and 14th August 1933 the present applicant Dharam Singh executed a fresh mortgage deed in lieu of the amounts due under the previous bonds in favour of the defendant Bishan Sarup, admitting that Rs. 4,300 in all were due from him, and mortgaging with possession the same properties which had been previously hypothecated. It has been admitted that no fresh advance was made by the mortgagee and no additional cash was paid. Under the terms of the usufructuary mortgage deed the mortgagee was entitled to appropriate income in lieu of the interest due to him, and accordingly no rate of interest was prescribed under the usufructuary mortgage deed. The present applicant filed a suit in the Court of the Munsif of Ghaziabad u/s 33(2), Agriculturists' Relief Act, for an account of money payable by him and for granting him a declaration to that effect. The trial Court applied the provisions of Section 33(2) and reduced the interest under the Usurious Loans Act of 1918, which is not in dispute befo

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