KEMPAMMA Vs. DEVICHAND MISRIMAL CO

JUDGEMENT

(1.) This is a third judgment-debtor's revision against the order dated 21-11-1979 passed by the Principal Civil Judge, Mandya, in Execution Case No. 174 of 1977, on his file, allowing the plaintiffs to adduce evidence to show the nature of the transaction resulting in the decree and to show that the provisions of the Karnataka Debt Relief Act, 1976, ('K.D.R. Act' for short), are not applicable to the transaction in question in view of Section 8 (h) of the K.D.R. Act.

(2.) Respondents 1 and 2 are the decree-holder. The revision-petitioner and respondents 3 and 4 are the judgment-debtors. The decree-holders are undisputedly wholesale cloth merchants. The revision-petitioner and respondents 3 and 4 are retail cloth merchants. It is undisputed that the revision-petitioner and respondents 3 and 4 were purchasing cloth from the decree-holders and that there was a settlement of accounts under which the revision-petitioner and respondents 3 and 4 were liable to pay Rs. 30,000/- at the foot of the accounts.

(3.) According to the decree-holders, the revision-petitioner and respondents 3 and 4 executed a simple mortgage deed on 17-12-1969 for Rs. 30,000/-, which was the sum arrived at on the settlement of accounts due at the foot of the accounts. The decree-holders, after giving deduction to the amounts paid, filed original Suit No. 67 of 1973 for recovery of the amount on the strength of the mortgage deed, alleging in the plaint that the consideration of Rs. 30,000/-, mentioned in the simple mortgage deed, was the amount found due on the settlement of accounts on account of the cloth purchased by the revision-petitioner and respondents 3 and 4 from the decree- holders. The said suit was decreed for Rs. 38,511-60 p.