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1941 Supreme(Cal) 273
CALCUTTA HIGH COURT
Sen, J., B.K. Mukherjea, J.
Asrab Ali Sirkar & Ors. - Appellant
Versus
Pioneer Bank, Ltd. & Anr. - Respondent
Decided On : 18-12-1941
The Court is obligated to grant relief under the Bengal Money-lenders Act when the interest decreed exceeds the prescribed limits, irrespective of the slight excess.
Headnote:
Bengal Money-lenders Act - Relief for Excessive Interest - The court is bound to grant relief under the Act when the interest decreed exceeds the limits prescribed by Section 30, regardless of the slight excess.
Fact of the Case:
The petitioners sought relief under the Bengal Money-lenders Act, claiming that the interest decreed on a promissory note exceeded the limits prescribed by the Act. The Court found the interest to be in excess but refused relief due to the slight difference.
Finding of the Court:
The Court set aside the order of the learned Judge and directed to make a decree in accordance with the provisions of the Bengal Money-lenders Act. The Court also instructed the Judge to consider whether the loan was a commercial loan and grant relief accordingly.
Issues: Excessive interest under the Bengal Money-lenders Act, classification of the loan as commercial or non-commercial.
Ratio Decidendi: The Court is bound to grant relief under the Act when the interest decreed exceeds the limits prescribed by Section 30, regardless of the slight excess. The classification of the loan as commercial or non-commercial is a relevant factor in determining relief under the Act.
Final Decision: The Court directed the Judge to make a decree in accordance with the provisions of the Bengal Money-lenders Act and consider the classification of the loan to determine relief.
JUDGMENT
Sen, J. - This rule arises out of an application under the Bengal Money-lenders Act. The petitioners were the executants of a promissory note for Rs. 1500. The interest payable on the promissory note was 10 1/2 per cent. per annum with six monthly rests. A decree was passed against the petitioners for the amount of the hand note with interest as stipulated therein. The petitioners have now applied for relief under the Bengal Money-lenders Act on the ground that the interest decreed exceeds the limits prescribed by Section 30, Bengal Money-lenders Act. The Court below finds that the amount of interest is in excess of the limits prescribed by the Act. The learned Judge however said that as the difference was very negligible he refused to grant relief under the Act, This reason, in our opinion, is unsound. When the interest decreed is in excess of the limits prescribed by Section 30 of the Act, the Court is bound to grant relief whether the excess is slight or not. We accordingly set aside the order of the learned Judge and direct that he make a decree in accordance with the provisions of the Bengal Meney-lenders Act.
2. It is argued on behalf of the opposite party that the loan was a commercial loan. This question has not been dealt with at all by the learned Judge. It appears from the affidavit that the question was raised and that evidence was adduced on the point. The learned Judge will, therefore, consider the point as to whether the loan was a commercial loan or not. If he finds that it was a commercial loan, then he will not interfere with the decree passed. On the other hand, if he finds that the loan was not a commercial loan, he will grant relief to the petitioners in the light of the observations made above. There will be no order for costs in the rule.
B.K. Mukherjea, J.
3. I agree.
