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TMI Blog1962 (1) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... paid then from the date of the default upto the date of payment of that installment interest at annas eight per cent per mensem was payable on the amount of the installment. 2. if there was any default in payment of two successive installments the creditor was to have a right to realise the principal and the interest due on those two installments which remained unpaid; and 3. if the creditor so desired he could realise the entire amount of the bond on default of payment of all the installments. 2. It is the admitted case of the parties that the defendants did not pay any installment. The present suit was brought by the creditor on and June 1943, that is, within three years of the default of the last installment claiming the entire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Indian Limitation Act. 5. Learned counsel for the appellant has contended before us that there are two default clauses in the document and under the first default clause the creditor was entitled to bring a suit for every two installments which fell due, while under the second default clause the creditor was entitled to claim the entire amount meaning thereby all the unpaid installments of the bond, and, consequently, the present suit by the creditor is in substance a suit to recover the unpaid installments and that to such a case the proper article to apply was Article 74 of the Indian Limitation Act and not Article 75. For this purpose reliance has been placed upon a decision of the Madras High Court in the case of V. Narayanswami v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of an installment, the suit for recovery of that money would have to be brought within a period of three years computed from the date of that default. That would be a suit for recovery of the amount due in respect of that installment and would be governed by Article 74. Similarly, if the suit is brought for recovery of the amount due under each successive installment, that suit would also have to be brought within three years from the date of each respective default in respect of the installment and the limitation would be governed by Article 74. Article 75 will apply to those cases where, instead of the suit being for individual installments, it is instituted for the recovery of the whole amount of the bond which remained due when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lment or more. It further appears that the right of suit to the creditor given under the bond was for the recovery of those installments only in respect of which default had been committed. The creditor was also given the option to sue for those very installments which had fallen due earlier at the time when all the installments had also fallen into arrears, In that case the creditor was not given the right to recover the entire amount of the bond as one single sum due under the bond on the basis that, even after the defaults were committed, the integrity of the bond had remained unaffected. The learned Judges took notice of the fact that under Clause (f) the only right conferred on the creditor was to recover the unpaid installments as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Lal v. Bhoora AIR1934All1039 and to the case of Munshi Lal v. Sagarmal 1943 All LJ 238, but both these cases are based on different facts. We do not think it necessary to go into those cases in any detail. 9. On the other hand, the Full Bench authority of this Court in the case of Jawahar Lal v. Mathura Prasad AIR1934All661 fully supports the view taken by us. That was a case in which an installment bond was executed with a stipulation that in case the fixed-installments with the interest thereon were not paid for any two successive months, then, in either case, the creditor would be authorised to realise the entire amount of principal and interest together with costs in a lump sum either within a stipulated period or after it. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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