MEDIKONDA SATYANARAYANA Vs. ANDHRA BANK LTD

JUDGEMENT

(1.) The scope and true effect of Sec. 21-A of the Banking Regulation Act X of 1949 (hereinafter called the Act) falls for determination in this appeal. The defendants who suffered an ex parte decree on the foot of a mortgage at the instance of the plaintiff-bank are the appellants in this appeal. The defendants remained ex parte in the trial Court and subsequent to the preliminary decree a final decree was also passed.

(2.) In this appeal filed against the preliminary decree the sole question raised is whether the defendants who claim to be agriculturists are entitled to the benefit of Act IV of 1930 (hereinafter called the State Act).

(3.) The learned counsel of the appellants relied upon a judgment of this Court reported in Indian Bank, Alamuru v. M. Krishna Murthy AIR 1983 Andh Pra 347, wherein the latter portion of Sec. 4 (e) of Act IV of 1938 was struck down as offending Art.14 of the Constitution of India. By virtue of the said provision as it originally stood the debts due to the banks are excepted from the purview of the Act. The original provision of Sec. 4 (e) is in the following terms :