UNITED COMMERCIAL BANK Vs. K ARUNA KUMARI

JUDGEMENT

(1.) The plaintiff in O.S. No.74 of 1979 on the file of the Subordinate Judge at Bapatla is the appellant in this appeal.

(2.) The facts of the case lie-in a very small compass. The plaintiff-Bank on 1-1CI-1975 advanced to the defendant No.l a sum of Rs.23,000/-on interest at the rate of 4% above the Reserve Bank of India rate subject to a minimum of 13% with half yearly rests. The defendants No.2 and 3 stood as guarantors. The loan was granted for agricultural purposes to defendant No.l who is an agriculturist. He did not pay the loan amount and interest amounting to Rs.32,615-70 paise, therefore, the plaintiff sued the defendants. The defendants resisted the suit mainly on the ground that the plaintiff-Bank is not entitled to claim interest at the rate of 13% per annum with half yearly rests. They are agriculturists within the meaning of the Andhra Pradesh Agriculturists Relief Act, 1938 (Act IV of 1938) and, therefore, the suit debt is liable to be scaled down. The plaintiff is also not entitled to claim costs of the suit.

(3.) The learned trial Court decided the following two issues only as the parties to the suit restricted their arguments so far as the question of interest was concerned: (1) Whether the interest claimed by the plaintiff is not usurious? (2) What is the amount due to the plaintiff?