PAIDI LAKSHMAYYA Vs. INDIAN BANK

JUDGEMENT

(1.) APPELLANT , Shri 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 against Lakshmayya in O.S.No. 77 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 Bank took over the Rayalaseema 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 parsons, M. Chinnappa Ready 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.No. 30 of 1953, on the field of the Subordinate Judge, Bellary, 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 balance remained unpaid at the time of the take -over of the Rayalaseema Bank by the Bank.