1. The question whether the payment of Rs. 643-12-0, dated 29th December, 1934, was appropriated before 1st October, 1937, is a question of fact which does not appear to have been decided by the Court below. It from the materials available, it can be shown that there was an appropriation towards interest made before 1st October, 1937, to the extent of that appropriation there cannot be any cancellation of interest and the appropriation will stand. Any appropriation made after 1st October, 1937, and before the commencement of the Act must be deemed to be available for readjustment in accordance with the provisions of the Act, vide our decision in C.R.P. No. 1602 of 1938. Satyanarayanamurthy v. Viranna : AIR1941Mad226 .
2. The petition is allowed and the application is remitted to the trial Court for disposal in the light of this judgment.
3. Costs in revision will abide by the result.