Dupada Madappa (Deceased) And Ors. vs Alampalli Athmaramayya Setti And Ors. on 12 February, 1954
This case can be distinguished from the present on the ground that here we have two contracts with identical terms though in respect of one of them there is also security for the repayment of the amount covered by that contract. The learned Judges in -- 'AIR 1943 Mad 338 (C)' distinguished a prior decision of theirs in -- 'Sankara Aiyar v. Yagappan Servaj', AIR 1941 Mad 193 (D). In that case, a promissory note was executed by a mortgagor for the amount of interest due. A suit was subsequently filed on the promissory note and an application was made to scale down the decree. It was held that the promissory note must be taken to be a renewal of the previous liability to pay interest and must be scaled down under Section 8 as a debt for interest. The creditor in effect took a fresh document for a separable portion of the debt due under the document.