The expression "a person" in clause (xii) of section 3(i) of the Andhra Pradesh Agricultural Indebtedness (Relief) Act (VII of 1977) refers only to the original creditor who is a small farmer or his small farmer heirs or legal representatives, and does not include assignee-creditors who acquired the right to the debt for the first time under a contract or a negotiable instrument.

( 1 ) THE plaintiff is the petitioners his claim that since he is a creditor within tie meaning of section 3 (k) of Act (VII of 1977) he is "a person" under clause (xii) of lection 3 (i) and as such the debt in question stands excepted from the operation of tke act was put in issue, but negatived by the trial Court. The same is reiterated in this revision.

( 2 ) THE facts lie in a short compass. The respondent executed the promissory note, exhibit A-1, dated 18th October, 1975 in favour of one M. Venkatrao. It was endorsed under Exhibit A-2 purported to be dated 2nd October, 1976, in favour of the petitioner for consideration and on foot thereof, he laid suit for recovery of the debt due under the promissory note. The respondent while admitting the execution, put forward that he is a small farmer and that debt, by operation of section 4 of Act VII of 1977 stands discharged and the proceedings in the suit abated. The frial Court accepted the plea of the petitioner that he is a holder in due course and the endorsement was made after the receipt of valuable consideration. It also hold that the respondent is a small farmer, but did not accede to the claim of the petisioner that he is a person under clause (xii) of section 3 (i) of the Act and dismissed the suit. Thus the revision.

( 3 ) IN this revision, it is not disputed that respondent is a small farmer. But the petitioner claimed that having found him to be the holder in due course, the lower Court ought to have held that he is also a small farmer and that the debt is excluded from the Act by operation of clause (xii) of section 3 (i) thereof. Therefore the suit should have been decreed ID support thereof he contends that as a holder in due course, he is entitled to recover in his own right the debt under tbe promissory note. He is a creditor within the meaning of section 3 (h) of the Act. It is an inclusive definition taking within its ambit an assignee and he stepped into the shoes of the principal creditor. So he becomes a porson" within the meaning of clause (xii) of section 3 (i ). He being a small farmer the Act takes the debt from its purview. He relies upon the decisions of this Court in G. Basavaiah v nalamothu Venkammall, and Abdul Aziz v. Smt. Golla Bhumawa.

( 4 ) ON the other hand, the learned Counsel for the respondent contended that though the petitioner is a creditor within the meaning of section 3 (h) by virtue of his be- inga holder in due course, he is not "a person" within the meaning of section 3 (i) (xii) of the Act. In support of his contentions he relied upon a decision of this Court in e. Chinna Rangaiah v. Rangata, which the counsel for the petitioner contends that it is no longer good law in view of Abdul Aziz s case.

( 5 ) UPON these rival contentions, the questions that arise for consideraticn are: whether the petitioner is "a person" within the meaning of Clause (xii) of section 3 (i) of the Andhra Pradesh Agricultural indebtedness (Relief) Act (VII of 1977), herein after referred to as "the Act"; and whether he is entitled to the benefit of the provisions of the Act.

( 6 ) FOR proper appreciation of the contentions, it is necessary to consider few relevant provisions of the Act. Under section 3 (i) "debt" includes any liability owing to a creditor in cash or in kind, whether secured or unsecured payable under a decree or older of a civil Court or otherwise and subsisting at the commencement of this Act, but does not include- ** ** ** ** (xii) any debt contracted by a debtor from a person who is an agricultural labourer, a rural artisan or a small former" (Since it is not in dispute that the respondent is a small farmer, it is not necessary to extract the other definitions ).

( 7 ) SECTION 4 (i) declared that notwithstanding with effect on and from the commencement of the Act, every debt including interest if any owing to any creditor by an agricultural labourer, a rural artisan or a small farmer shall be deemed to be wholly discharged. Section 2

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