Equitable waiver of interest granted where borrower paid principal and hardship justified settlement on that basis.

Relief was granted on equitable considerations where the borrower had already deposited the principal amount and sought waiver of interest because of poverty and famine-related hardship. The court treated the payment of principal as sufficient to settle the claim, and the interest component was dispensed with in view of the respondent's circumstances. The matter was therefore treated as finally settled on the basis of the principal amount already deposited.

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Issues: Whether the respondent, having already paid the principal amount of the loan, was entitled to exemption from payment of interest and settlement of the claim on that basis.

Analysis: The respondent had deposited the principal amount and sought dispensation of interest on account of poverty and circumstances caused by famine. The relief was granted on considerations of fairness and the difficulties faced by the respondent, and the claim was treated as settled on payment of the principal amount already made.

Conclusion: The respondent was held entitled to exemption from interest, and the claim stood finally settled on payment of Rs. 3,000 already deposited.

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