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2000 Supreme(AP) 180

Andhra Pradesh High Court
Kannapu Reddy Venkata Subbareddy - Appellant
Versus
Gopavaram Rama Krishna Reddy - Respondent
S.A.No.526/92
Decided On : 03-13-00
Advocates Appeared :
Mr.K. Rameshnath Reddy, Mr.M.N. Narasimha Reddy

Headnote:AP AGRICULTURISTS DEBT RELIEF ACT, IV of 38 - AP ACT 7/77 - INDIAN CONTRACT ACT, Sec2(d) - Plaintiff filing suit on foot of promissory note - Defendant contends that suit pronote was executed in renewal of prior promissory notes and that he was agriculturist and also small farmer - Trial Court dismissed suit holding that suit promissory note not supported by consideration - Appellate court reversed judgment and decree of trial court and decreed suit as prayed for holding that defendant voluntarily executed suit promissory note for past debt and same is valid consideration in view of Sec2(d) of Indian Contract Act and that defendant working as Branch Post Master and that agriculture is not main source of his livelihood - For claiming benefit of Act IV of 38, debtor need not personally cultivates land - Proof of saleable interest in agricultural land is sufficient - Appellate court committed illegality in holding that defendant is not entitled for benefit of Act IV - Defendant owns and is possessed lands and Branch Post Master post is a part time job and admittedly defendant is not an Income tax assessee - All interest is liable to be scaled down in accordance with provisions of Act IV of 38

C. V. N. SASTRY, J.

( 1 ) THIS Second Appeal by the sole defendant in the suit is directed against a reversing Judgment. The sole respondent-plaintiff has filed the suit for the recovery of a sum of Rs. 17,294-24 ps. on the foot of a promissory note dated 6-5-83 ex ecuted by the defendant in his favour for a sum of rs. 10,054. 79 ps. repayable with interest @ 24% per annum.

( 2 ) THE defendant while admitting the execution of the suit pronote pleaded that no cash was lent under the suit pronote, but the same was executed in renewal of prior promissory notes. According to him, he initially borrowed Rs. 2,000/- only under a pro-note dated 5-6-74, which was renewed by executing a fresh pronote dated 30-5-77 for Rs. 3,432/ -. That on 30-5-80, he made a part payment of Rs. 20/- thereunder, which was endorsed thereon, and ultimately on 6-5-83, the suit pronote was obtained by the plaintiff for Rs. 10,054. 79 ps. calculating interest at 24% p. a. from the inception. The defendant further pleaded that he was an agriculturist and as such interest is liable to be scaled down from the inception, as per andhra Pradesh Agriculturist Relief Act IV of 38 (for Short act IV of 38 ). He also pleaded that he was a small farmer as defined in A. P. Act 7/77 and as extended by Act 45/87, and as such, the debt must be deemed to have been discharged, and the suit was liable to be dismissed.

( 3 ) ON the above pleadings, the following issues were framed in the suit. (1) Whether the suit promissory note is renewal of earlier pronotes? (2) Whether the suit promissory note is supported by consideration? (3) To what relief?

( 4 ) IN support of his case, the plaintiff, besides examining himself as P. W. I, also examined one of the attestors on the suit pronote as P. W. 2 and marked the suit pro-note as Ex. A-1. On his side, the defendant examined himself as D. W. I and got marked the previous pronotes and endorsements thereon as Exs. B-1 to B-3.

( 5 ) WHILE the specific case set up in the plaint was that cash consideration of rs. 10,054. 79 ps. was paid to the defendant under the suit pronote Ex. A-1, in the evidence of P. Ws. l and 2, a new case was developed to the effect that the defendant borrowed a sum of Rs. 10,000/- in cash from the plaintiff on 29-3-82 and he repaid a sum of Rs. 2,592/- towards interest and executed ex. A-1 for the balance amount of rs. 10,054. 79 ps.

( 6 ) THE trial Court, disbelieving the said evidence of P. Ws. l and 2, came to the conclusion that the suit pronote was not supported by consideration, and accordingly dismissed the suit with costs. The appellate Court came to the conclusion that Ex. A-1 was voluntarily executed by the defendant for the past debt owed by him to the plaintiff, as evidenced by Exs. B-1 to B-3 and that the same is a valid consideration for the suit pronote, in view of Sec. 2 (d) of the Indian Contract Act. On the further question whether the defendant was entitled for the benefits of Act IV of 38 of act 45/87, the appellate Court was of the view that he was not entitled to the benefit of the said Acts, since he was working as a village Branch Post Master and agriculture was not the main source of his livelihood. On the said findings, the appellate Court reversed the judgment and decree of the trial Court and decreed the suit with costs throughout as prayed for.

( 7 ) ONE of the substantial questions of law framed in the Second Appeal is whether the lower appellate Court acted legally in not applying the provisions of act. 4/38, having regard to the fact that the appellant/defendant is also an agriculturist.

( 8 ) IT is not in dispute that the defendant owns and is possessed of an extent of ac. 1. 10 cents of wet land and Ac. 1. 20 cents of dry land. He is also working as Village branch Post Master, which is a part time job. It is not the case of the plaintiff that the defendant is an Income Tax Assessee. The defendant is, therefore, undoubtedly an agriculturist within the meaning of A. P. Act iv of 38.


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