9911796707
TMI Blog1948 (12) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... course of such business he was advancing loans and supplying sundry articles from time to time to the appellant. This case is not concerned with transactions that took place before 1929. It is the respondent's case that in respect of moneys advanced and goods supplied in and after 1929 there was a settlement of account as a result of which a sum of ₹ 49,747-12-0 was found due from the appellant and accordingly he passed in favour of the respondent a promissory note for that sum on 8th September 1932 agreeing to pay simple interest at 9 per cent. per annum. The amount was made up of ₹ 23,321-7-0 being advances in cash, ₹ 15,294-3-3 being the price of articles supplied and ₹ 12,132-1-9 being compound interest due a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Subordinate Judge, however, worked out the average rate of interest on the various transactions on the basis of simple interest and, finding that it was over 13 per cent. per annum held that the interest charged was exorbitant and excessive. He was of opinion that 6 per cent. per annum was a reasonable and just rate having regard to the fact that the appellant was the premier zamindar of the place and had no other debts to pay. The High Court, on the other hand, was of opinion that no ground was made out for holding that the rate of interest charged was in excess of the commercial rate prevailing at the time. The term commercial used in such context by the Privy Council has been explain-ed by their Lordships in Sunder Mull v. Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that the transaction was unfair. The High Court held that these two circumstances afforded no ground for holding that the transaction as a whole was substantially unfair as between the parties, and we entirely agree with that view. The allowance of a com-mission on the purchase of a motor car is a matter of bargain between the dealer and the purchaser, and its non-allowance cannot be regarded as necessarily inconsistent with fair dealing. The charge of a small sum as travelling expenses of the respondent, even if it was not strictly justifiable in the circumstances, was too trivial a fault to vitiate the fair character of a transaction which covered numerous dealings extending over a number of years and involving large sums. 7. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the suit was brought, there was no room here for the application of that section. They relied on certain previous rulings of their own Court including Deo Nandan Prasad v. Ram Prasad A.I.R. (81) 1944 Pat. 303 F.B. and the decision of this Court in Jaigobind Singh v. Lachmi Narain Ram A.I.R. (27) 1940 F.C. 20 in support of their view of the construction of Section 7. While the decisions in Patna undoubtedly support that view, we are unable to find any clear pronouncement by this Court on the point in Jaigobind Singh v. Lachmi Narain Ram A.I.R. (27) 1940 F.C 20. In that case the parties settled accounts in respect of a preexisting liability and agreed that part of the money borrowed from the same lender under a later mortgage should be appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owers under the section in favour of the appellant. They observed further that, even if an account were taken as claimed by the appellant, the resulting reduction of interest would be so insignificant as to make it inadvisable to reopen the whole transaction. The learned Judges view on the construction of Section 8 is in accord with the decision of this Court in Jaigobind Singh v. Lachmi Narain Ram A.I.R. (27) 1940 F.C. 20 where it was further held that this Court would not interfere with the exercise of its discretion by the High Court under Section 8 unless it appeared that that Court did not apply its mind at all to the question before it or acted capriciously or in disregard of some legal principle or was influenced by some extraneous ..... X X X X Extracts X X X X X X X X Extracts X X X X
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