SANT SARAN LAL Vs. PARSURAM SAHU

JUDGEMENT

(1.) The sole point urged in this appeal under certificate from High Court, is whether a money-lender, registered under the Bihar Money-Lenders Act, 1938 (Bihar Act III of 1938), hereinafter called the Act, can sue his debtor for a loan in excess of the amount mentioned as the maximum amount upto which he could transact business under the registration certificate issued to him.

(2.) The facts of the case may be briefly stated. Sant Saranlal and Bhanuprakash Lal, plaintiffs Nos. 1 and 2 respectively, sued defendants Nos. 1 to (Sic) a registered money-lender under the Act and the registration certificate constituted a partnership business under the name and style of Banwarilal Kishanlal in 1947. Out of this amount, Rs. 3,500 had been lent prior to January 17, 1950 and the balance of Rs. 11,870 was lent between January 21, 1950 and May 14, 1951. The suit was contested on various grounds.

(3.) The trial Court found that the various amounts were advanced for the purposes of the firm. It found that plaintiff No. 2, Bhanuprakash Lal, was a registered money-lender under the Act and the registration certificate dated January 17, 1950 stated that he had been registered as a money-lender on that day to transact money-lending business upto a maximum of Rs. 4,999 only. It further held that the fixing of this limit to the money-lending business did not debar plaintiff No. 2 from suing for amounts in excess of Rs. 4,999 in case he had really advanced that amount. The trial Court accordingly decreed the suit for Rs. 11,870 plus interest pendente lite at 6 per cent per annum.