UNION BANK OF INDIA Vs. S RAMA THULASAMMA

JUDGEMENT

(1.) The plaintiff namely, Union Bank of India, Guntur in O.S.No.6 of 1984 on the file of the Additional Subordinate Judge, Narasaraopet, is the appellant herein. It has filed the suit against defendants No.1 to 4 for recovery of a sum of Rs.26,064-40 paise on the basis of promissory notes dated 22-10-1974 and 1-11-1979 (Exhibits A-2 and A-3) and the deeds of mortgage dated 28-8-1973 and and 22-10-1974 (Exhibits A-l and A-4) executed by the 1st defendant and the guarantee bond dated 22-10-1974 (Ex.A-5) executed by defendants No.2 to 4. As per Exhibits A-2 and A-3, the rate of interest payable was 3 1/2 % over and above the Reserve Bank of India rate of interest subject to a minimum of 121/2 % per annum with half yearly rests.

(2.) The plea of the defendants in their written statement was that they are entitled to the benefit of the provisions of Sec.13 of the Andhra Pradesh (Andhra Area) Agriculturists Relief Act, 1938. The learned Additional Subordinate Judge having accepted their plea granted only 51/2 % per annum simple interest from the date of the promissory notes till the date of the suit and 121/2 % per annum from the date of the suit till the date of realisation. Accordingly, he passed the judgment and decree dated 4-4-1985. Hence this appeal is filed by the plaintiff to the extent of interest disallowed.

(3.) Shri T.S. Haranath, the learned counsel for the appellant, submits that in view of the decision of the Supreme Court in Bank of India vs. M/s. Vijay Transport and Others the judgment under appeal is liable to be reversed.