Sonai Singh vs Randhir Singh and Others

Sunder Lal, J.—In this case the only question is, at what rate should interest be allowed to the plaintiff-appellant. The bond in suit contained a covenant to pay interest at the rate of Rs. 12 per cent, by a certain date. If the money was not paid on the said date, the interest was to run at Rs. 24 per cent, from the date of the bond. A stipulation like this to have retrospective effect is penal and cannot be enforced. The Court has power to award such interest a3 it may consider reasonable. In this case the Court has awarded at Rs. 12 per cent. This was a matter entirely in the discretion of the Court below. I cannot interfere in second appeal and I dismiss the appeal with costs, including fees on the higher scale. Time for payment is extended by three months. Interest will run at Rs.12 per cent. up to the period of three months to which time for payment is extended.