JUDGMENT

VENKATACHALIAH, J. :— This appeal, by special leave, is by the plaintiff - Bank of Baroda - a nationalised-bank constituted under the Banking Companies [Acquisition and Transfer of Undertakings] Act (Act No. 5, of 1970) and is directed against the judgment, and decree dated 29-6-1988* of the High Court of Andhra Pradesh in Second Appeal No. 832 of 1987 affirming the concurrent decrees of dismissal of plaintiffs suit recorded by the trial and the First Appellate Courts. The two Courts below dismissed the suit principally on the ground - upholding the respondents defence in that behalf - that Section 13 of the Andhra Pradesh [Andhra Area] Agriculturists Relief Act, [4 of 1938] [A.R. Act, 1937, for short] prohibited the charging of compund interest. Appellants case that Section 4(e) of the said Act itself excluded its application to Banks constituted under a statute was not accepted.

* Reported in (1988) 2 Andh LT 148.

2. On 16-10-1982, appellant instituted the Original Suit 47 of 1983 on the file of Subordinate Judge, Eluru, for the recovery of a sum of Rs. 13,076.45 alleged to be due towards principal and the balance of accrued interest under an agricultural- loan obtained by