Andhra HC (Pre-Telangana)
Union Bank Of India, Rep. By Its Branch ... vs Sunkara Rama Thulasamma And Ors. on 17 April, 1993
Equivalent citations: 1993(2)ALT563
JUDGMENT D. Reddeppa Reddi, J.
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-1 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 12 1/2% 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 Section 13 of the Andhra Pradesh (Andhra Area) Agriculturists Relief Act, 1938. The learned Additional Subordinate Judge having accepted their plea granted only 5 1/2% per annum simple interest from the date of the promissory notes till the date of the suit and 12 ½% 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 v. Vijay Transport and Ors., the judgment under appeal is liable to be reversed.
4. In that case, the Supreme Court while over-ruling the decision of a Division Bench of this court in Indian Bank, Alamuru, Vijayawada v. Muddanna Krishna Murthy and Anr., AIR 1983 A.P. 347 held that in view of the provisions of Section 4(e) of the Andhra Pradesh (Andhra Area) Agriculturists Relief Act, 1938 Section 13 of the said Act has no application to nationalised banks.
5. In view of the principles laid down by the Supreme Court, it must be held that the defendants are not entitled to the benefit of Section 13 of the Andhra Pradesh (Andhra Area) Agriculturists Relief Act, 1938. Therefore, the appeal must succeed. It is accordingly allowed. However, there will be no order as to costs.