ANDHRA BANK PRODDATUR Vs. CHALLA SUBBA REDDY

JUDGEMENT

(1.) The second appeal is filed by the Andhra Bank, Proddatur, questioning the judgments and decrees of the Courts below to the limited extent of scaling down the interest on the ground that the respondent-defendant is an agriculturist and hence entitled to the benefits of Act IV of 1938.

(2.) The appellant-plaintiff bank had filed a suit against the respondent-defendant for recovery of Rs. 3,226-06 paise being the principal and interest due on a demand promissory note dated 4-10-1974 executed by the respondent-defendant in favour of the appellant-plaintiff bank for Rs.2,000.00 with a minimum interest of 17% per annum with quarterly rests and for costs and since the respondent-defendant deposited title deeds also in respect of the plaint schedule property, a mortgage decree was prayed for. The appellant-plaintiff is a banking institution with its registered office at Hyderabad having branches all over India and O.S.No. 295 of 1981 on the file of the Principal District Munsif, Proddatur was instituted by the Andhra Bank, Proddatur represented by its then Branch Manager for recovery of the aforesaid amount. No doubt several other details had been pleaded in the plaint and a specific stand was taken that the appellant-plaintiff bank is exempted from the purview of the Andhra Pradesh (Andhra Area) Agriculturists Relief Act, 1938 (Act IV of 1938) and also Act 7 of 1977. The respondent-defendant had taken specific stand that the appellant-plaintiff is not entitled to charge compound interest and also the said debt is liable to be scaled down and the Court of first instance after recording evidence of P.W.I and D.W.I and also marking Exs.A-1 to A-4 had no doubt decreed the suit. But, however, the suit debt was scaled down following the decision reported in Indian Bank, Alamur v. Muddana Krishna Murthy and the appellant-plaintiff bank aggrieved by the same had preferred A.S.No.50 of 1984 on the file of the Subordinate Judge, Proddatur taking specific stand that the ratio laid down in Indian Bank, Alamur v. Muddana Krishna Murthy is not applicable and the scaling down of the interest under the provisions of the Act IV of 1938 is not sustainable in law. But, however, the appellate Court had also arrived at the same conclusion and aggrieved by the same, the present appeal is filed.

(3.) Sri D. Gopala Krishna, the learned counsel representing the appellant-plaintiff-Andhra Bank (In short hereinafter referred to as 'the Bank') had made the following submissions.