JUDGMENT

1. This is an appeal from the judgement and decree of the Principal Subordinate Judge, Narasaraopet, given in A.S. 75 of 1967 on 12th Jan. 1968 whereby the learned Judge allowed the appeal and granted decree in favour of the plaintiff for the amount due under Ex. A-1 deducting two payments of Rs. 1700/- each covered by Ex. A-2 and Ex. A-3 together with counter interest on the sums from the respective dates. Finally a decree for Rs. 1564-95 p. was granted.

2. The material facts, in order to appreciate the contentions raised before me are that the respondent-plaintiff filed the suit for recovery of Rs. 2721-70 ps. being the balance of the principal and interest due on a promissory note dt. 1-9-1962 executed by the defendant in favour of Kudithipudy Raghavaih, the plaintiff's transferor for Rs. 4,500/-. The defendant paid Rs. 1700/- on 19.7.63 and Rs. 700/- on 28.1.1964 as part payments. The promissory note was transferred to the plaintiff for collection on 20-5-1966. The plaintiff, therefore asked for a decree.

3. The defendant admitted the execution of the promissory note and the borrowing of Rs. 4,500/- from the plaintiff's ???. He further contended that he paid in all Rs.