P. A. CHOUDHARY, J.

( 1 ) THE facts:-- The plaintiff , the State bank of India, Eluru Branch is the appellant. It appeals against a judgment of the learned District Judge, Eluruwho in A. S. No. 151 of 1980 confirmed the judgment of the trial Court dismissing a suit filled byt he Bank for recovery of a sum of money advanced by the Bank as loan to an agriculturist. In O. S. No. 176 of 1979 on the fill of the district Munsif, Eluru for recovery of a sum of Rs. 8,260. 20. That amount was made up of the principal and compounded interest due on the loan mius the part payments made bythe defendant agrkculturist from time to time.

( 2 ) THE principal sum the defendant borrowedc from the plaintiff was only Rs. 7,200. 00 and that amount was secured by a mortgage. But that amount soared to be the suit amount even after the defendant had made part payments because of the stipulation of agreement providing for payment of compound interest. The loan agreement provided for the payment 11/2 of interest subject to a condition of the debtor paying a minmum of 81/2% per annum with quarterly rests on the borrowed amount. Thus the principal amount of loan earned every quarter interest which was added in

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