Horwill, J.-The appellant filed a petition in the Court of the District Judge of East Godavari, the order on which is under appeal, to scale down his debt under section 19 of Madras Act IV of 1938. Evidence was adduced; and after hearing arguments, the learned Judge framed three points as arising for determination on the allegations in the petition and counter and on the evidence and arguments, They were:

(1) Whether the petitioner is barred by principles of res judicata from preferring the petition?

(2) Whether the petitioner is entitled to the benefits of Act IV of 1938? and

(3) What is the amount which will be due if the decree is scaled down? On the first point the learned District Judge decided in favour of the appellant. On the second point he held that the appellant was not possessed of any saleable interest in the property on the relevant dates, 1st October, 1937, and 22nd March, 1938, and that he was therefore not entitled to the benefits of Act IV of 1938. Because of this finding the petition had to be dismissed; and so the learned District Judge did not consider the third question as to the extent to which the decree would have to be scaled down.

The decree to be sca