Judgment

DUTT, J. :- This appeal by special leave is at the instance of the appellant, the Bank of India, a nationalised Bank, and is directed against the judgment and decree of the Andhra Pradesh High Court in so far as they direct that the appellant is entitled to recover the amounts claimed by it against the respondent firm only after the scaling down of the debt in accordance with the provisions of the Madras Agriculturists Relief Act IV of 1938 which, after the creation of the State of Andhra Pradesh, was made applicable to that State as the Andhra Pradesh (Andhra Areas) Agriculturists Relief Act IV of 1938, hereinafter referred to as the Act.

2. The appellant Bank filed a suit being 0. S. No. 12 of 1979 in the Sub-Court, Eluru, on February 10, 1975 against the respondents including the respondent firm and its partners to recover a sum of Rs. 18,14,817.91 being the balance (inclusive of interest) of three principal amounts of Rs. 3,00,000/-, Rs. 7,00,000/- and Rs. 80,000/- severally advanced by the Bank to the firm under cash credit account on 28-11-1967, 3-4-1968 and 17-2-1972 respectively. It may be noticed here that the Bank was nationalised on July 7, 1969 under the Banking