C KUPPURAJ Vs. R VASUDEVAN

JUDGEMENT

(1.) DEFENDANTS are the appellants.

(2.) THE averments in the plaint are briefly as follows: THE defendants 1 and 2 and their father Chakrapani Chettiar mortgaged the suit property belonging to them in favour of the plaintiff on 5.11.1972 and borrowed Rs.20,000 towards their family expenses, agreeing to repay the same with interest at 18% per annum and at 21% if there is any default. THE father of defendants 1 and 2 died in 1979. Defendants 1 and 2 are his heirs. THEy have not paid, any amount towards the principal or interest. Defendants are aware of the suit mortgage deed due to the plaintiff even during the proceedings, in O.S.No.283 of 1975 filed by the brother of the plaintiff. Chakrapani Chettiar was an assessee of incometax. THErefore he is not entitled to the benefits of the Debt Relief Acts. Defendants are assessed to sales tax. THErefore, the plaintiff claims interest at 18% per annum towards the amount due under the mortgage.

(3.) THE trial Court has accepted the case of the defendants that Chakrapani Chettiar was making payment towards interest and it has also granted the relief in favour of the defendants deducting a sum of Rs.3,600 paid by Chakrapani Chettiar to the plaintiff. It is not in dispute that the defendants 1 and 2 and their father Chakrapani Chettiar were held as agriculturists entitled to the benefits of Act IV of 1938. THE trial court has negatived the claim of the defendants that they are entitled to the benefits of Act IV of 1938 on account of the proviso (c) to Sec.3 of the Act. THE learned counsel appearing for the appellants would argue that it is only on this question the defendants are aggrieved and have come forward with this appeal and it is necessary to hold that the defendants are entitled to benefits of Act IV of 1938 and the interest is also calculated only at 9% per annum as per Sec.l3-A of the Act. Sec.l3-A of the Madras Agricultural Relief Act, which was introduced into the Act by the Amending Act XXIII of 1948 provides for a ceiling rate of interest incurred to a debt payable by a certain category of non-agricultural debtors.