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Judgment
3 paragraphs · 235 wordsW. Comer Petheram, C.J.—I think that this appeal must be allowed. As I understand the matter, the principal and interest are claimed at Rs. 15,000 by calculating compound interest for a period of three years, and simple interest at Rs. 13-8 per cent, from the end of that period to the date of the institution of the suit. The tetms of the bond are rather more wide than 1 at first supposed, and they appear to me to amount to a covenant to pay interest at the stipulated rate after the period of three years, so long as the principal remained due. The terms of the bond seem to bring it within the case cited by Mr. Hill; and, if so, we are bound to follow the decision in that case But our own view is the same. If the bond contains an express covenant for the payment of interest at this rate, then the interest will not be affected by the considerations of the reasonableness or otherwise of the rate, because the amount was agreed upon by the parties. It is also well within what would have been due to the plaintiff, if he had taken the account strictly on the terms specified in the bond. The appeal must be decreed, and the decree will be for the amount claimed in the plaint with costs.
Mahmood, J.
I am of the same opinion.