PAIDI LAKSHMAYYA Vs. INDIAN BANK

JUDGEMENT

(1.) Appellant Sri Paidi Lakshmayya, who has been unsuccessful in his defence both in the Courts of the Civil Judge and District Judge, Bellary, against the claim of the respondent, Indian Bank Limited (Bank), has preferred this appeal.

(2.) The Bank claimed a money decree against Lakshmayya in O.S. No. 73 of 1962 on the file of the Civil Judge, Bellary. The suit was decreed as prayed for and came to be confirmed in R.A. No.1 of 1965 on the file of the District Judge, Bellary.

(3.) The claim has an interesting background. In order to appreciate the question involved in this appeal the facts, on which the Bank's claim against Lakshmayya is based, may be noted. The Bank took over the Rayalaseama Bank Ltd., in the year 1961 and thus succeeded to all its assets. Prior to its merger the Rayalaseema Bank had advanced Rs. 10,000 as short term loan to two persons M. Chinnappa Reddy and Harinarayanaswami of Dharmavaram Taluk, in the year 1951. Since they did not discharge the debt in time the Rayalaseema Bank filed a suit against them in O.S. 30 of 1953 on me file of the Sub-ordinate Judge, Beliary and obtained a decree against them. Towards the decretal amount a sum of Rs. 6,000 is said to have been paid during 1953 and the balance remained unpaid at the time of the take-over of the Rayalaseema Bank by the Bank.