JUDGMENT

Edgley, J. - The plaintiff in this suit is the Nawab Bahadur of Murshidabad. His case is to the effect that, on 25th July 1920, he borrowed a sum of Rs. 5,00,000 from the defendant, Rameswarlal Ganeriwalla in the benami of Bilasroy Chowdhury and Srilal Chamria on the security of certain immovable properties in Calcutta and also of two life insurance policies belonging to plaintiff. According to him, the understanding was that the defendant should reimburse himself for the principal and interest of the loan out of the rents and profits of the immovable properties (and in case of his death, from the proceeds of the two insurance policies).

2. In 1927 the plaintiff instituted: Suit No. 1384 of 1927 in this Court for a declaration that the above mentioned transaction was in contravention of the conditions of the Murshidabad Act of 1891. He obtained a decree in that suit on 2nd July 1928, the transaction being set aside on a personal decree for five lakhs of rupees with interest thereon at 6 per cent. per annum being made against him. On appeal a consent decree was made on 13th August 1928 by which the decretal amount was increased from five lakhs of rupees to six and a half lakhs with interest thereon at 6 per cent. per annum compound. It was also directed that the defendant was to pay the premia and keep the two life insurance policies in force which had been given by way of security. Thereafter, Bilasroy Chowdhury and Srilal Chamria assigned the decree of 13th August 1928 in favour of the defendant Rameswarlal Ganeriwalla by two deeds dated respectively 19th December 1928 and 17th January 1929. Thereafter, on the application of the defendant, the Official Receiver was appointed on 7th August 1929 for the purpose of collecting the rents of the aforesaid properties as well as the interest on certain Government securities. The Official Receiver appointed Babulal Chokhani, a cousin of the defendant, as his agent in connection with this matter, on a remuneration of 15 per cent, of the collections.

3. In September 1933 the Murshidabad Estate Administration Act was passed by the Central Legislature. On 23rd January 1935, Mr. K.C. De, the Manager of the Estate, in pursuance of the authority vested in him under the aforesaid Act determined the liability of the plaintiff in respect of the debt due to the defendant to be Rs. 26,892-3-6 and reduced interest thereon to 6 per cent. per annum. Thereafter, on appeal, the Board of Revenue modified the award of Mr. K.C. De on 28th July 1935 and held that the plaintiff's liability on 1st April 1934 was Rs. 5,42,173. The Board of Revenue further directed that the premia paid after April 1934 in respect of the two policies aforesaid should be added to the debt which should carry interest at the rate of 6 per cent. per annum.

4. The plaintiff maintains that, although the transaction under which he originally became indebted to the defendant or his predecessors took the form of a lease, it was in reality a loan, in respect of which he had repaid considerably more than double the amount of the original principal. He therefore claims that he is entitled to various reliefs under the provisions of the Bengal Money-lenders Act (Bengal Act X [10] of 1940). The main reliefs which he seeks are as follows: (1) That he be released from all liabilities in excess of the limits specified in cls. (1) and (2) of S. 30, Bengal Money-lenders Act; (2) that the transaction be re-opened and accounts be taken between the parties; (3) if necessary, the award of the Board of Revenue dated 28th July 1945 be set aside; (4) that the insurance policies be re-assigned to him and (5) that proper accounts be taken and the liability, if any, be determined under the provisions of the Bengal Money-lenders Act.

5. The case for the defendant is that the transaction dated 25th July 1920, was a lease to Bilasroy Choudhury and Srilal Chamaria for a period of 21 years in respect of certain properties in Calcutta in consideration of the