JUDGMENT

B. P. JEEVAN REDDY, J.:—This appeal raises the question whether the debt due to the appellant-bank from the respondents is saved from extinction by virtue of any of the exceptions contained in Cl. 4 (definition of "debt) in S. 2 of the Kerala Agriculturists Debt Relief Act, 1970. The question arises in execution proceedings.

2. The respondents had obtained a loan from Travancore Forward Bank Limited The latter was a Banking Company within the meaning of the Banking Regulation Act, 1949. The said Bank was amalgamated with the appellant-Bank on and with effect from 15th May, 1961 in pursuance of a scheme of amalgamation prepared by the Reserve Bank of India under the provisions of the Banking Regulation Act. As a result of the amalgamation, the assets and liabilities of the Travancore Forward Bank including the amounts borrowed from and remaining due to the said Bank on the date of amalgamation vested in the appellant. To recover the said debt, the appellant filed O.S. No. 151 of 1962 in the Court of Subordinate Judge, Kottayam. It was decreed. The appellant took out execution wherein the respondents/ filed I.A. No. 2469 of 1970 under S. 8 of the Kerala Agriculturists Debt Relief Act, 1970 (hereinafter referred to as Act) claiming that since they are agriculturists, the debt due from them to the appellant stands extinguished by virtue of the provisions of the Act. The appellant, on the other hand, submitted that the debt due to it is not a "debt" within the meaning of the Act inasmuch as it is saved by the exception contained in sub-cl. (a)(ii) of Cl. (4) in S. 2. We may pause here and set out the definition of debt contained in Cl. (4) in S. 2, in so far as it is relevant for the purpose of this case :

"(4) "debt" means any liability in cash or kind, whether secured or unsecured, due from or incurred by an agriculturist on or before the commencement of this Act, whether payable under a contract, or under a decree or order of any Court, or otherwise, but does not include

(a) any sum payable to

(i) the Government of Kerala or the Government of India or the Government of any other State or Union Territory or any local authority; or

(ii) the Reserve Bank of India or the State Bank of India or any subsidiary bank within the meaning of Cl. (k) of S. 2 of the State Bank of India (Subsidiary Banks) Act, 1959 or the Travancore Credit Bank (in liquidation) constituted under the Travancore Credit Bank Act, IV of 1113:

Provided that the right of the bank to recover the sum did not arise by reason of

(A) any assignment made or

(B) any transfer effected by operation of law, subsequent to the 1st day of July, 1957, or

(iii) a corporation owned or controlled by the Government of Kerala; or the Government of any other State or the Government of India or a Government company as defined in the Companies Act, 1956; or ........

(1) any debt exceeding three thousand rupees borrowed under a single, transaction and due before the commencement of this Act to any banking company:

Provided that in the case of any debt exceeding three thousand rupees borrowed under a single transaction and due before the commencement of this Act to any banking company; and agriculturist debtor shall be entitled to repay such debt in eight equal half yearly instalments as provided in sub-sec. (3) of S. 4, but the provisions of S. 5 shall not apply to such debt, or ..........

3. The appellants case was that since it is a subsidiary bank of the State Bank of India, the debt due to it is saved by sub-clause (a)(ii). This plea of the appellant, however, failed in view of the proviso appended to the said sub-clause. According to this proviso, the said exception does not apply to any debt which is transferred in favour of the appellant by operation of law subsequent to 1st July, 1957. As noticed herebefore the debt was originally due to the Travancore Forward Bank which debt devolved upon the appellant by operation of law i.e., by virtue of amalgamation effected under the provisio