THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY A.S.No.601 of 2008 JUDGMENT: The first appellant obtained agricultural loan of Rs.5,55,000/- from the respondent on 26.06.1998. The amount was to be paid with interest at the rate of 14.79% per annum, subject to periodical changes. The second appellant, the husband of the first appellant, stood as security for repayment of the loan. Alleging that the appellants committed default in clearing the loan, the respondent filed O.S.No.67 of 2005 in the Court of the Senior Civil Judge, Rajampet. It was alleged that despite issuance of demand notices, the appellants did not clear the debt. In their written statement, the appellants pleaded that they had time to clear the debt and the suit was filed prematurely. They have also alleged that certain amounts paid by them were not taken into account. Through its judgment, dated 28.03.2008, the trial Court decreed the suit for a sum of Rs.5,26,171/- with interest at 12% per annum from the date of decree till the date of realisation. The appellants feel aggrieved by that. Sri Srinivas Emani, learned counsel for the appellants, submits that during the pendency of appeal, the Central Government had announced the Agricultural Debt Waiver and Debt Relief Scheme, 2008 (for short “the Scheme”) and if the benefit is extended to the appellants, virtually the decree stands cleared. He contends that when a memo was issued for payment of instalments in terms of the Scheme, the instalments were paid and states that though the debt stood cleared, the respondent included certain amounts, indicating them to be still due. Sri M.Narender Reddy, learned Standing Counsel for the respondent, on the other hand, submits that the trial Court itself has given credit to the amounts which were paid by the appellants, but were not taken into account while finalising the suit. He further submits that the benefit of the Scheme was extended to the appellants and the amount due would only represent the last instalments, for payment of which, there was still time. The appellants do not dispute that they have borrowed a sum of Rs.5,55,000/- from the respondent. The loan is to be repaid in five instalments and the repayment is to commence on expiry of seven years from the date of disbursement. It is, no doubt, true that the loan was payable up to 2010. However, the appellants committed default in payment of instalments that became due from time to time. Obviously, the respondent felt aggrieved and instituted proceedings for recovery of the amount. In the plaint, it was pleaded that a sum of Rs.6,26,171/- is due. The appellants brought to the notice of the trial Court that a sum of Rs.1,00,000/- paid by them was not taken into account at all. In all fairness, the respondent did not dispute that fact and the trial Court has taken credit of that amount. Since there was no dispute as regards the other amount, a decree was passed for a sum of Rs.5,26,171/-. Fortunately for the appellants, the Central Government announced the Scheme during the pendency of the appeal. It provides for payment of the amount due without interest in three instalments and extension of benefit of waiver of 25% of the outstanding, subject to payment of balance. The appellants have paid three instalments of Rs.48,173/- and the entire outstanding amount was liquidated with that, duly extending the benefit of waiver of 25% also. In the memo given to the appellants, it was mentioned that though the outstanding amount was cleared, still one instalment of Rs.1,11,000/- with the corresponding interest is due. Mention was also made to the legal expenses. A perusal of the Scheme discloses that the benefit is extended only for the outstanding and not in respect of the amount, for payment of which, there was time. Viewed in this context, the demand for the last instalment of Rs.1,11,000/- cannot be found fault with. The interest thereon is also not waived. So far as the legal expenses are concerned, this Court is of the view that the appellants cannot be mulcted with that, particularly when they have been extended the benefit of the Scheme. For the foregoing reasons, the appeal is partly allowed, directing that the decree shall be confined to a sum of Rs.1,11,000/- with simple interest at the rate of 9% calculated from 29.02.2008. There shall be no order as to costs. _____________________ L.NARASIMHA REDDY,J Dt:14.10.2009 kdl