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Mayank_Pandit
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Where a fresh document is executed for the amount remaining due on account of principal and interest under a loan advanced prior document, and a suit is brought for recovery of the amount due under the later document with interest due there under, the amount of loan mentioned in, or evidenced by, such document for the purposes of s. 7 of the Bihar Money Lenders Regulations and Transactions Act, 1939, is the amount mentioned, or evidenced by, the later document and not that mentioned in the original document which was renewed; and the court can pass a decree for an amount of interest for the period preceding the institution of the suit, which together with any amount realised as interest after the date of the later document, is not greater than the amount of loan mentioned in the later document. The maximum amount that can be so decreed is not the amount which together with the interest realised from the date of the original loan does not exceed the original loan. The facts which have led to the appeals are found briefly stated in the petition filed by the present appellants in the 3rd Court of Sub Judge, Patna, and may be re-stated here for convenient reference The father of the petitioners borrowed Rs. 40,000 from the guru (ancestor) of the decree holder under mortgage bond, dated 11-1-1893. The Subordinate Judge held that the amount of the loan should be taken as the amount mentioned in the mortgage deed of 1931 and not the amount advanced in 1893 and that a sum of Rs. 70,840 was still due on the bond. He determined the market value of the several properties given as security, adopting 16 times the net income as the basis. Whichever method of calculation is adopted, it must be remembered that it has to be made not for the purposes of passing any decree on the mortgage loan, but for estimating under section 13 of the Act the value of the properties to be brought to sale in execution of the money decree against the appellants. This construction no doubt enables a creditor to circumvent the beneficent provisions.