Judgment

GUPTA, J.:- This appeal brought on a certificate of fitness granted by the Kerala High Court arises out of a proceeding under the Kerala Agriculturists Debt Relief Act, 1970.

2. The first respondent had an overdraft account with the Catholic Bank of India Limited since 1954. An order for the winding up of the Bank was made sometime in May, 1957. On a claim being filed by the official liquidator against the first respondent, the High Court of Kerala on January 8, 1963 made an order asking the first respondent to pay a sum of Rs. 5130/10 p. with future interest at the rate of 6 per cent per annum on the principal amount of Rupees 4663/39 p. This order was presumably made under Section 45D (4) of the Banking Regulation Act. 1949 (hereinafter referred to as the Central Act). On May 1. 1970 Rs. 5130/10 p. was recovered from the first respondent leaving a balance of Rs. 2375/80 p. carrying interest at 6 per cent per annum still to be realized. Sometime in July, 1970 the Kerala Agriculturists Debt Relief Act, 1970 (hereinafter referred to as the Kerala Act) came into force. A few days after the Kerala Act came into operation, the first respondent applied to the High Court under Sections 4 and 5 of that Act praying for a declaration that

"he has discharged the debt due to the Catholic Bank of India Limited and that no more amount is due from him as per accounts."

The application ultimately came up for hearing before a Division Bench of the High Court* which held that the Central Act must exclusively govern the determination of the question of the amount due from the applicant and that he could not claim any benefit under the Kerala Act. Appellant, State of Kerala, disputes the correctness of the view taken by the High Court.

* 1972 Tax LR 1970

3. Part III-A of the Central Act containing Sections 45A to 45X prescribes special provisions for the speedy disposal of winding up proceedings. Section 45A lays down inter alia that the provisions of this Part shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force. Under Section 45D (4) the High Court is authorised to pass an order for payment of the amount due by each debtor of a banking company and make such further orders as may be necessary. Sub-section (5) of this section provides that subject to the provisions for appeal, an order made by the High Court under sub-section (4) shall be final and shall be deemed to be a decree in a suit. In the case before us the High Court took the view that the first respondents application under the Kerala Act was one for scaling down the debt which the High Court had earlier found due from him and that allowing the prayer made in the application would be contrary to Section 45D (5) of the Central Act. The High Court found it impossible to reconcile the provisions of the Central Act with those of the Kerala Act and held that in this conflict the Central Act should prevail. The High Court was therefore, of opinion that the relief granted by the Kerala Act was not available to the first respondent.

4. The first respondent in his application under Sections 4 and 5 of the Kerala Act asked for a declaration that he had discharged his debt to the Bank and no further amount was due from him. We find however that neither Section 4 nor Section 5 provides for such a relief. Section 4 lays down that an agriculturist may discharge his debt in instalments. The material part of Section 5 is sub-section (2) which provides that for determining the amount due to a banking company for the purpose of payment under this Act, interest shall be calculated at the rate applicable to the debt under the law or contract or the decree or order of the court under which it arises or at 7 per cent per annum, whichever is less. As stated earlier, the debt due to the Bank from the first respondent was directed to bear interest at the rate of 6 per cent per annum by the order dated January 8, 1963. Thus the only relief t