( 1 ) SECOND Appeals Nos. 268 of 1985, 832 of 1987 and 378 of 1986 were heard by a Division Bench of this Court consisting of V. Sivaraman Nair and D. J. Jagannadha Raju, JJ. In these appeals, Banking Companies are the appellants, while in A. S. No. 1778 of 1984 Union Bank of India is the first, respondent.

( 2 ) THE main point that was debated before the Division Bench was regarding applicability of Section 21-A of the Banking Regulation Act, 1949 to the transactions entered into between a Banking Company and its debtors.

( 3 ) ON behalf of the Banking Companies, it was contended that after coming into force of Section 21-A of the Banking Regulation Act, 1949 (for short regulation Act, 19490, Courts are prohibited/debarred from reopening the transactions entered into between the Banking Company and its debtor invoking the provisions of Usurious Loans Act, 1918 (for short act 10 of 1918 ) irrespective of the fact whether the transaction was entered into prior to the coming into force of Section 21-A of the Act. It is also contended that Section 21-A will be applicable to a suit filed prior to the coming into force of the said provision and pending on the said date, as well as to

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