( 1 ) THIS appeal is filed by the plaintiff in O. S. No. 312/84 on the file of the Additional Subordinate Judge, Guntur.

( 2 ) THE plaintiff-Bank filed a suit for recovery of a certain sum of money from the defendants under an equitable mortgage claiming interest at the contract rate and costs. The contract rate is 9. 5 per cent over and above the Reserve Bank of India rate subject to a minimum of 18. 5 per cent with quarterly rests. The defendants contended that the rate of interest is penal and usurious. The learned Subordinate Judge held that the rate of interest is penal and usurious and reduced it to 12 1/2 per cent per annum simple interest and passed a preliminary decree granting four months time for redemption. The plaintiff filed this appeal aggrieved by the judgment of the lower court reducing the rate of interest.

( 3 ) IN this appeal the learned counsel for the appellant contended that subsequent to the insertion of Sec. 21-A of the Banking Regulation act, 1949, it is not permissible for the court to reopen the interest and reduce it. Sec. 21-A of the Banking Regulation Act reads as follows :"notwithstanding anything contained in the Usurious Loans act