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Kannu Vs. Natesa and anr. - Court Judgment

LegalCrystal Citation
SubjectProperty
CourtChennai
Decided On
Judge
Reported in(1891)ILR14Mad477
AppellantKannu
RespondentNatesa and anr.
Excerpt:
mortgage - suit for arrears of interest and sale--suit before principal sum became due. - - this clearly shows that the true intention of the parties was to postpone the sale of the mortgaged property till the principal becomes due and to give the mortgagee on default of payment of interest only a right to the enhanced rate of interest on principal and on the arrears of interest......is due, and we think moreover that plaintiff is precluded by the terms of the document from suing for the interest before the principal is due and must content himself with the compensation which the mortgage document gives him for the default in payment of interest.2. the second appeal fails and is dismissed.
Judgment:

1. The mortgage document provides that, in default of payment of the interest at 8 per cent, on the dates fixed for payment, interest at 9 per cent, shall be charged on the interest in arrears till payment and also the interest on the principal shall be raised from 8 per cent, to 9 per cent. This clearly shows that the true intention of the parties was to postpone the sale of the mortgaged property till the principal becomes due and to give the mortgagee on default of payment of interest only a right to the enhanced rate of interest on principal and on the arrears of interest. We agree with the lower Courts that plaintiff cannot bring the mortgaged property to sale for arrears of interest until the principal is due, and we think moreover that plaintiff is precluded by the terms of the document from suing for the interest before the principal is due and must content himself with the compensation which the mortgage document gives him for the default in payment of interest.

2. The second appeal fails and is dismissed.


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