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IN THE HIGH COURT AT CALCUTTA
DEBANGSU BASAK, MD.SHABBAR RASHIDI
Sudha Kankaria – Appellant
Versus
Bhavya Bothra – Respondent
| Table of Content |
|---|
| 1. overview of the appeal against the trial court's money recovery decree. (Para 1 , 2) |
| 2. parties' contentions regarding the respondent's status as a money lender under the 1940 act. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14) |
| 3. procedural history and the binding nature of prior court findings on license requirements. (Para 15 , 16 , 17 , 18 , 19) |
| 4. application of res judicata to findings made at different stages of the same proceeding. (Para 20 , 21 , 22 , 23) |
| 5. statutory necessity of holding a money lending license under section 13 of the act. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31) |
| 6. duty of courts to dismiss unlicensed money lender claims at the threshold. (Para 32 , 33 , 34 , 35 , 36 , 37) |
| 7. final order setting aside the decree and dismissing the original suit due to lack of license. (Para 38 , 39) |
JUDGMENT :
DEBANGSU BASAK, J.
1. The appeal is at the behest of the defendant and directed against the judgment and decree dated December 17, 2025 passed in CS 162 of 2020.
2. By the impugned judgment and decree, learned Trial Judge, decreed the suit filed for recover of money lent and advanced.
3. Learned advocate appearing for the appellant submits th
A court can pass Judgment and Decree on admission based on admissions made by a party, even if the defendant raises a defence, if the defence is insufficient or illusory.
Engaging in the business of money lending without a license under the Bengal Money Lenders Act, 1940 renders the lender ineligible for obtaining a decree for loan recovery.
Civil Court decree upholding sale-deed as absolute sale binds Money Lending Act authorities via res judicata; transaction not money-lending without proven interest, essential for 'loan' definition.
The central legal point established in the judgment is that a money lender without a license is barred from maintaining a suit under the Karnataka Money Lenders Act, 1961.
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