S. JABAPERUMAL Vs. CENTRAL BANK OF INDIA, A BODY CORPORATE WHOLLY OWNED BY THE GOVERNMENT OF INDIA INCORPORATED UNDER BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT AND ORS.

JUDGEMENT

(1.) THE first defendant in O.S. No. 83 of 1972 in the Court of the Subordinate Judge of Tuticorin is the appellant. The plaintiff is the Central Bank of India and it filed a suit against the defendants for recovery of a sum of (Rs. 10,937.31 with further interest and costs. The first defendant had executed a promissory note for Rs. 20,000 in favour of the Bank undertaking to repay the loan with interest at 4 per cent per annum over the Reserve Bank rate with a minimum of 9 per cent per annum with half -yearly rests. By way of an equitable mortgage, the first defendant deposited his title deeds and he executed also a hypothecation bond covering his banana crops on the land. Defendants 2 and 3 are the guarantors. The first defendant had paid various amounts and the sum claimed in the suit is the balance after giving credit for the amounts paid by the first defendant. In his written statement, the first defendant contended, inter alia, that he was an agriculturist and that the plaintiff was not entitled to recover interest at more than 61/4 per cent per annum according to the provisions of Tamil Nadu Act IV of 1938. The learned Subordinate Judge went into the question whether the 1st defendant was an agriculturist entitled to the benefits of Act IV of 1938 and came to the conclusion that, though he was an agriculturist, he was not entitled to the benefits of Act IV of 1938. It is this conclusion of the learned Subordinate Judge which is now challenged before me.

(2.) THE only point that arises is whether the first defendant is entitled to the benefits of Tamil Nadu Act IV of 1938. Section 4 of the Act as it was in force prior to the amendment in 1973, to the extent necessary, ran as follows: