SHEIKH MAITHEEN Vs. GEORGE

JUDGEMENT

(1.) This appeal arises out of an order passed by the court below on an application filed by the appellants under S.4 and 7 of the Kerala Agriculturists' Debt Relief Act, Act XI of 1970, for short the 'Act'. The court below, though found that the appellants were agriculturists entitled to pay the debt in instalments as provided under S.4 of the Act, did not accept the method of calculation to arrive at the amount outstanding suggested by the appellants; hence this appeal.

(2.) The counsel for the appellants submits that the provisions of S.5 and 6 of the Act have not been correctly applied by the court below; it has not, in merely applying the aggregate amount paid towards interest, due on a calculation at 6% of the principal, and then applying the balance towards principal, given true and full effect to the provisions. He contends that between 1960 and 1967, the appellants had been paying interest at 12%, in terms of the contract, which would mean that the payment made every time was in excess of the interest that would have been due to the respondent if the provisions of S.5, 6 were applicable even then. His argument, in other words, is that every such payment, at 12%, had, deemed in terms of S.5 and 6 of the Act, resulted in excess payment by 6%, and if appropriation of such excess payment is deemed to have been made towards principal, and the balance struck, as on the date of every payment, it would have diminished the principal gradually, the consequential reduction of the quantum of interest payable on the principal towards subsequent instalments also then accelerating the process of liquidation of the debt. S.5 and 6 of the Act relied on by the counsel read as follows:

(3.) Reliance was placed by the counsel for the appellants on the decision of this Court in Sankara Kurup v. Joseph ( 1962 KLT 309 F. B.). The Head Note to the decision reads as follows: