KALYANI AMMA Vs. AMMA RAJA

JUDGEMENT

(1.) These two appeals arise out of an order passed by the District Judge of Parur in proceedings in execution of the decree in O.S. 6 of 1105 on his file. The learned advocates appearing for both the parties agreed that the amount shown as the principal in paragraph 3 of the order, viz., Rs. 3,570/- is wrong and that the correct amount is Rs.2,955-9-3 cash. The learned counsel appearing for both the parties also agreed that the direction contained in the order regarding interest is incorrect and ought to be modified as under:- The amount is to carry interest according to the direction in the decree until 1.2.1116, but limited to half the amount of the principal. From 1.2.1116 onwards the interest will be at 4 per cent. The order of the lower court will stand modified as above.

(2.) There is one matter however upon which the learned counsel appearing for both the parties could not agree and that is the only matter for decision by this court. The matter is this:- S.1 of the Travancore Debt Relief Act, II of 1116 fixes the amount of interest to be calculated for purposes of payment under S.8 and 9 of that Act, notwithstanding S.31 of the Civil Procedure Code. The provision under S.11 of the Debt Relief Act is this:- 'Interest shall be calculated until the date of decree in such a manner as not to exceed half of the principal amount.' It also provides that interest from the date of decree till the date of the Act shall not exceed half the amount of the principal. So far the parties are in agreement. The controversy relates to this i.e., as to whether having thus fixed the maximum amount due as on the date on which the Act came into force, which would be the debt payable in instalments under the Act, whether it has to carry future interest from the date of the Act. A peep into S.8, 9 and 11 would, we consider, make the matter clear. S.8 provides for discharge of a debt by payment of a part thereof in instalments as provided in S.9. S.9 provides for instalmental payment and for discharge of the entire debt by payment of certain percentages according as the total is made good in certain number of years. S.9, Cl.(1)(c) would show that the debt within the meaning of that section is the debt subsisting at the commencement of the Act. S.9(1) reads thus:- 'If 80 per cent of the amount of any debt together with future interest that may accrue thereon is repaid within nine years from the date of the commencement of the Act, the whole debt shall, notwithstanding anything contained in any law, contract, decree or order of Court to the contrary, be deemed to be discharged.'

(3.) The judgment debtor filed C.M.P. 3634/1121 in the court below under S. 15 of the Debt Relief Act. The court below does not appear to have considered this petition on its merits and it is this omission that has led to A.S. 180 of 1125 which is filed by the judgment debtor. We reverse the order appealed against and remand the case to the court below for consideration of the above C.M.P. upon its merits and for disposal of the entire matter in the light of the decision come to by us as mentioned above.