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Orissa High Court
R. N. MISRA, C.J. AND P. K. MOHANTY, J.
Vysyaraju Badarinarayana Moorty Raju - Appellant
Versus
State of Orissa - Respondents
Original Jurn. Case No.577 of 1977
Decided On : 15 July 1981
MONEY LENDERS ACT - SECTION 18-B - ORISSA MONEY LENDERS ACT, 1939 - SECTION 18-B - INTERPRETATION AND APPLICATION - LIMITATION ACT, 1963 - SECTION 29(2) - APPLICABILITY TO STATUTORY NOTICES - EXTENSION OF TIME - JURISDICTION OF SPECIFIED AUTHORITY.
Fact of the Case:
Petitioner, a registered moneylender, challenged the order of the specified authority under Section 18-B of the Orissa Money Lenders Act, 1939, as affirmed by the appellate authority, which declared that the petitioner's money-lending transactions were liquidated due to non-compliance with the notification issued under Section 18-B(1) of the Act. The petitioner argued that he had submitted his accounts up to November 1975, as required by the first notification, and that the second notification did not specify that transactions after the first notification were to be accounted for. The petitioner also contended that the specified authority had the power to condone the delay in filing the accounts under Section 5 of the Limitation Act, 1963.
Finding of the Court:
The Court held that the specified authority did not have the power to condone the delay in filing the accounts under Section 5 of the Limitation Act, 1963, as the provisions of the Limitation Act did not apply to the case. The Court further held that the second notification did not restrict the transactions to be accounted for to those after the first notification, and that the petitioner had complied with the second notification by intimating the specified authority that the accounts up to November 1975 were already before the authority. Therefore, the Court quashed the orders of the specified and appellate authorities and directed the specified authority to issue the requisite certificate under Section 18-B(2) of the Act to the petitioner in respect of the money-lending transactions up to November 1975.
Issues: 1. Whether the specified authority had the power to condone the delay in filing the accounts under Section 5 of the Limitation Act, 1963? 2. Whether the second notification restricted the transactions to be accounted for to those after the first notification?
Ratio Decidendi: 1. The provisions of the Limitation Act, 1963, do not apply to the case as the requirement under Section 18-B(1) of the Act is not in relation to filing of suits, appeals, or applications. 2. The second notification did not specify that transactions after the first notification were to be accounted for, and the petitioner had complied with the second notification by intimating the specified authority that the accounts up to November 1975 were already before the authority.
Final Decision: The Court quashed the orders of the specified and appellate authorities and directed the specified authority to issue the requisite certificate under Section 18-B(2) of the Act to the petitioner in respect of the money-lending transactions up to November 1975.
Judgement
MISRA, C.J.:- This application under Article 226 of the Constitution of India seeks to assail the order passed by the authority specified under Section 18-B of the Orissa Money Lenders Act, 1939 (opposite party No. 3.) as affirmed in appeal by the authority specified under sub-section (6) thereof (opposite party No. 2).
2. Petitioner is a registered moneylender under the provisions of the Orissa Money Lenders Act (hereinafter referred to as the Act ) carrying on business in Berhampur area within the district of Ganjam and in his certificate of registration bearing No. 40 of 1973, the, amount specified was Rs. 13,25,000/-. The original Act underwent an amendment and by Orissa Act 54 of 1975. Section 18-B was inserted into the statute. As far as relevant that section provided:
"(1) The State Government may, from time to time, by notification, require the money lenders or money lenders belonging to any class or carrying on business in any local area, to produce before such authority and by such date as may be specified in the said notification, all records relating to their business including documents evidencing advance of loans.
(2) The authority specified in the notification referred to in sub-section (1) shall scrutinize the documents with a view to determining if the transactions exceed the amount for which the money lender has obtained the registration certificate and shall, after giving the money lender a reasonable opportunity of being heard, pass an order declaring the particulars of transactions that are within the amount specified in the said certificate.
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(5) An order made under sub-sec. (2) ...........shall forthwith be communicated to the concerned money lender by the authority who has made the order.
(6) Any person aggrieved by an order passed under sub-section (2).......may, within one month from the date of communication of the said order, prefer an appeal before such authority as may be specified in the notification referred to in sub-section (1).
(7) An order passed under sub-sec. (2) ..........shall, subject to the order passed in an appeal, if any, be final and shall not be called in question in any Court." In exercise of powers under sub-sec. (1), the State Government issued a notification dated 11th October 1975, which was published in the Orissa Gazette in an extraordinary issue dated October 15. 1975. The notification was to the following effect :
"S.R.O. No.776/75 - The State Government in exercise of the powers conferred by Section 18-B of the Orissa Money Lenders Act, 1939 as amended by the Orissa Money Lenders (Amendment) Ordinance, 1975, do hereby direct that all registered money lenders carrying on business in Berhampur Tahsil of Ganjam
district shall produce the records relating to their business including documents evidencing advance of loans to the Sub-Divisional Officer, Berhampur, within one month from the date of publication of this notification. Appeal against any order passed by the Sub-Divisional Officer, Berhampur under sub-section (2) or sub-section (4) of Section 18-B of the Orissa Money Lenders Act, 1939 shall be preferred to the Collector, Ganjam." Petitioner submitted his return to the specified authority on 10-12-1975 and the authority after perusing the return on 12-12-1975, required the petitioner to produce his records and accounts before the Nizarat Officer for a preliminary check. The Nizarat Officer furnished his report pointing out defects and the specified authority after adjourning the matter from time to time ultimately on 18-5-1976, passed the following order:-
"Received the case record. The moneylender has not furnished the required return showing the transactions of money-lending within the stipulated period. As such he is not entitled to a declaration prescribed under Sec. 18-B (2) of O. M. L. Act, 1975. In result, as far as the jurisdiction of civil court is concerned the transactions of money-lending made by the money-lender stand liquidated. As such I do no
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