ASSOCIATED TIMBER INDUSTRIES Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) Leave granted.

(2.) The question that arises for determination in this case is whether the Central Bank of India is a 'money-lender' under the Assam Money-Lenders Act, 1934 (Assam Act 4 of 1934) (hereinafter referred to as "the Assam Act") and, therefore, is required to take a licence under the said Act to carry on its activities The question having been answered in the negative by a Division Bench of the Gauhati High Court, the defendants have filed this appeal assailing the judgment.

(3.) The factual backdrop of the case relevant for determination of the question may be stated thus: The Central Bank of India, respondent herein, filed the suit for realisation of certain amount from the Associated Timber Industries, Chabua and others, appellants herein, being the amount due to the Bank towards sums advanced to the defendants. The defendants raised an objection against maintainability of the suit on the ground of non-compliance with the provisions of the Assam Act, particularly S. 7-D. To be more specific the objection was that the Bank being a 'money-lender' has not been registered under the Assam Act; in the absence of a registration certificate, the suit is not maintainable and, therefore, cannot be proceeded with.