Joshi Kalidas vs Koli Dada Abhesang on 12 April, 1888

JUDGMENT

Charles Sargent, C.J.

1. We think the Subordinate Judge was right in holding that the stipulation, by which on default of payment of one instalment double the entire amount of the debt was to become at once payable, was in the nature of a penalty. The mere acceleration of payment of the debt would not have that effect, but the enhancing the amount of the debt (in this case amounting to more than 100 per cent.) ought, we think, to be so regarded, as shown by the remarks of the Court in Sterne v. Beck 1 De G., J. & S., p. 595 and The Protector Endowment Loan and Annuity Company v. Grice 5 Q.B. Div., p. 592.