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2024 Supreme(Online)(GAU) 177
HIGH COURT OF GAUHATI
MR. JUSTICE SANJAY KUMAR MEDHI, J
PAWAN KUMAR JAJODIA @ PAWAN JAJODIA AND 2 ORS. – Appellant
Versus
MOHIT TEXTILES AND 2 ORS. – Respondent
RSA / 101 / 2024
MR. P J SAIKIA, SR. ADV
The court examined whether a transaction qualifies as a loan under the Assam Money Lenders Act, 1934, impacting the suit's validity.
Headnote:(A) Code of Civil Procedure, 1908 - Section 100 - Assam Money Lenders Act, 1934 - Appeal against judgment and decree - The appellants challenged the reversal of a money suit decree by the First Appellate Court, asserting that the invocation of the Assam Money Lenders Act was inappropriate as they were not in the business of lending money. (Paras 1-2)
(B) Substantial Question of Law - The court admitted the appeal on the question of whether the transaction of Rs.3,00,000/- constitutes a loan under the Assam Money Lenders Act, determining the applicability of the Act to the case. (Paras 2)
(C) Findings of Court - The court noted the necessity of determining whether the transaction falls under the definition of loan according to the Assam Money Lenders Act, which could bar the suit. (Paras 2)
(D) Issues - The primary issue addressed was the classification of the financial transaction as a loan under the Assam Money Lenders Act. (Paras 2) (E) Ratio Decidendi - The court emphasized the need for clarity on the nature of the transaction between the parties to ascertain the applicability of the Assam Money Lenders Act. (Paras 2) (F) Result - Appeal admitted on substantial question of law.
12-06-2024 Heard Shri R. S. Mishra, learned counsel for the appellants, who by means of this appeal preferred under Section 100 of the Code of Civil Procedure, 1908 has assailed the judgment and decree dated 12.12.2022 passed by the learned District Judge, Dibrugarh in Money Appeal No. 01/2019 whereby the judgment and decree dated 02.08.2017 passed by the learned Civil Judge, Dibrugarh in Money Suit No. 11/2005 is set aside. The appellants were the plaintiffs in the suit instituted for recovery of money. The suit was decreed by the Trial Court which however was reversed by the First Appellate Court.
It is contended that the invocation of the Assam Money Lenders Act, 1934 was uncalled for as it was not the business of the plaintiffs/appellants to give loan and it was a solitary incident wherein the loan was taken by the defendants/respondents.
Let the appeal be admitted on the following substantial question of law:-
- “Whether the transaction of Rs.3,00,000/- between the predecessor-in-interest of the appellants and the respondents would come within the definition of loan under the Assam Money Lenders Act, 1934 and therefore whether the suit would be barred under the said Act?”
- This Court may frame any other substantial questions of law at the time of hearing with notice to the respective parties.
- Call for the records.
- Let steps be taken for service of notice upon the respondents by usual process.
- Steps within 2 (two) days.
- List this matter after 6 (six) weeks along with the service report.
