On 1st July 1933 the petitioner executed the suit promissory note for Rs. 391-15-1 which was in renewal of an earlier promissory note for Rs. 255-15-0. On 4th September 1934 the petitioner made a payment of Rs. 26-5-2 towards the interest and Rs. 110-2-10 towards the principal of the suit promissory note. The plaint was filed on 4th September 1937. On the basis of the Bench decisions, the appropriations made on 4th September 1934 cannot be undone. The result is that as on this date the principal of the suit note is reduced to Rs. 281-12-3. This principal is made up of Rs. 255-15-0 being the principal originally advanced and Rs. 25-13-3 interest. Under S. 8 (Explanation) of Act IV of 1938 the principal of the renewed promissory note will be Rs. 255-15-0 and the interest outstanding on 1st October 1937 will be cancelled. It is not possible for the defendants to prove either that the appropriation towards the principal of the suit note was really towards that portion of the principal which consisted of the original principal, or that there was a sum in excess of Rs. 25-13-3 and subsequent interest outstanding towards interest as on 1st October 1937. The decision of the lower Court is correct and the revision petition is dismissed with costs.
Petition dismissed.
N.R.R