GAMINI KRISHNAYYA Vs. GURAZA SESHACHALAM

JUDGEMENT

(1.) The question that falls for decision in this appeal by special leave from the judgment of the High Court of Andhra Pradesh is whether a debtor who has executed a promissory note after the coming into force of the Madras Agriculturists Relief Act, 1938, ( Mad Act IV of 1938) Hereinafter referred to as the Act), in renewal of a debt incurred prior to the commencement of the Act is entitled to claim the benefit of S. 9 of the Act. The trial court upheld the debtor's contention but in appeal the Subordinate Judge rejected and decreed the appellants' suit in full. The High Court held that the interpretation placed on the relevant provisions of the Act by the Subordinate Judge was erroneous, allowed the appeal and restored the decree passed by the trial court.

(2.) Certain facts have to be stated in order to appreciate the contentions of the parties. The plaintiffs who are the appellants before us and the fourth defendant constituted a Hindu joint family of which the first plaintiff was the manager till the year 1944 when the fourth defendant separated from the rest and the remaining members continued to remain joint. On September 14, 1938 the first defendant as manager of the joint family consisting of himself, the second and the third defendant's executed a promissory note in favour of the first plaintiff as manager of the joint family consisting of the plaintiffs and the fourth defendant for a sum of Rs. 9,620-2-9 and agreed to pay interest at the rate of 9 and 3 / 8 per cent per annum. This amount was found due to the family of the plaintiffs and defendant No. 4 on foot of dealings between that family and the family of defendants 1 to 3 which commenced in the year 1934.

(3.) In original suit No. 84 of 1949 brought by the fourth defendant against the plaintiffs for partition of the family property the first defendent deposited a sum of Rs. 13,576-0-0 on March 17, 1951 alleging that that was the amount due to the family of the plaintiffs and defendant No. 4 from the family of defendants 1 to 3 on foot of the promissory note of September 14, 1938. In arriving at this amount the defendants 1 to 3 took into account the provisions of the Act and scaled down the interest as permitted by S. 9(1) of the Act. The plaintiffs disputed the correctness of the calculation whereupon the defendants 1 to 3 withdrew their application but all the same the plaintiffs withdrew the amount eventually. The plaintiffs thereafter instituted the suit out of which this appeal arises in which they claimed Rs. 3,858-13-3 and costs on the basis of the calculations made by them and set out in the memo accompanying the plaint.