9911796707
|
Home
Issues:
1. Interpretation of Section 67A of the Transfer of Property Act. 2. Validity of the stipulated interest rate in the mortgage deed. Analysis: Issue 1: Interpretation of Section 67A of the Transfer of Property Act The case involved a mortgagee holding multiple mortgages from the same mortgagor and suing on one of them. The appellant argued that Section 67A of the Transfer of Property Act required the mortgagee to sue on all mortgages in such a scenario. However, the court clarified that Section 67A applies when the mortgagor is the same for all mortgages and the mortgagee has a right to obtain the same kind of decree on each mortgage. In this case, the mortgagor in the suit on the mortgage dated October 14, 1950, was not the same as in the previous suit involving mortgages by the appellant and his wife. The court emphasized that each mortgagor owned separate properties and joined in mortgaging their respective properties. Therefore, the bar of Section 67A did not prevent the institution of the present suit. Issue 2: Validity of the stipulated interest rate in the mortgage deed Regarding the interest rate stipulated in the mortgage deed, the court found the rate of 12% to be unfair and penal. The court decided to modify the interest calculation to be at the original contractual rate of 10 1/2% from the date of the mortgage to the date of the preliminary decree. Subsequently, the interest would be payable at the rate of 6% per annum until realization. Despite dismissing the appeal, the court ordered each party to bear their own costs in the proceedings. In conclusion, the Supreme Court clarified the interpretation of Section 67A of the Transfer of Property Act and addressed the validity of the interest rate in the mortgage deed, providing a modified calculation for interest payments.
|
