MEGHRAJ & ORS. vs MST. BAYABAI & ORS.

The Supreme Court upheld the High Court's decree regarding the mortgagee-firm's right to recover principal and interest, affirming that the interest rate could be set at 4% post-November 10, 1946, as per the clarification order. The Court ruled that the mortgagors' claims regarding deposits made towards principal were not substantiated, as there was no evidence that the mortgagees were informed of such deposits. The Court also clarified that under Section 9 of the Madhya Pradesh Money Lenders Act, 1934, interest cannot exceed the principal amount, but this did not apply in this case as the mortgagors failed to prove their claims.