SEETHARAMAYYA Vs. VENKATESWARA RAO

JUDGEMENT

(1.) The petitioner is the plaintiff. The suit is filed for recovery of the sum of Rs. 656.60 p. on the basis of the promissory note executed by the defendant on 9-10-74 in favour of the plaintiff. The plea of the defendant is that he actually received Rs. 400/- only and though he owned Ac. 1.95 cents of wet land originally i.e., prior to March, 1976, Ac. 0.50 cents of land was sold in March, 1976 and Ac. 1.07 cents of land was gifted in favour of his daughter and his wife owns ac. 0.30 cents of wet land in Allapuram village. The alienations were made in March, 1976 and he is a small farmer by the time Act 7 of 1977 into force. The trial court framed the following issues viz., whether the promissory note is not supported by consideration to a tune of Rs. 200/- and whether Act 24 of 1976 applies ? The additional issue is to this effect: "Whether the defendant is entitled to benefits of Act 7/77 ?

(2.) The trial court held that the promissory note is supported by consideration. It was further held that in view of holding of Ac. 1. 95 cents of wet land prior to March, 1976 the alienations are not hit by Act 24/76 and he is a small farmer entitled to the benefits under Act 7/77.

(3.) The contention of the learned counsel for the petitioner is two fold viz., that the alienations made by the defendant are in the teeth of embargo under Act 24/76 and the alienations should not be computed for the purpose of considering the applicability of benefits under Act 7/77. The learned counsel for the respondent contended that the defendant was not a small farmer during the crucial time when Act 24/76 is applicable and as such the alienations cannot be considered as a bar to the claim for the benefits under Act 7 of 1977 and Act 24/76 being a temporary enactment is not effective after expiry and further the crucial date for the purpose of determination whether the defendant is a small farmer is 29-12-76 on which date Act 7/77 came into force and the antecedent events have no impact.