NANDRAM KANIRAM Vs. N B RAHATEKR

JUDGEMENT

(1.) DR. N. B. Rahateker, M. B. B. S. , D. O. R. S. , carrying on medical profession in the city of Pune (the plaintiff) entered into the following transaction with a trading firm Messrs. Nandram Kaniram, through its proprietor Vithaldas Kaniram Bajaj, carrying on business in the city of Pune (the defendant ). Plaintiff paid a sum of Rs. 15,000/- to the defendant through a cheque dated 24th June 1976 through a Hundi Dalal. On that day the defendant gave a post-dated cheque for Rs. 15. 000 dated 22nd September 1976, and a cheque for Rs. 562/- representing interest on Rs. 15,000 for a period of 90 days.

(2.) IT is common ground that this is not the only transaction of this nature between the parties. During last seven years, such transactions were entered into by plaintiff with some others traders. Total of these transactions was 6 or 7. Basic question that arises in this second appeal is whether the plaintiff could be said to carry on "the business of money-lending" so as to bring him within the definition of the term "money-lender" as per section 2 (10) of the Bombay Money-Lenders Act (the Act), and whether the transaction amounted to "loan" as defined under section 2 (9 ).

(3.) FEW more facts, before I go to the question. The cheque for interest was encashed and the cheque for Rs. 15,000/- bounced. This fact was brought to the notice of the defendant. As suggested by him, it was presented in the Bank again on 26th October 1976. It bounced again. Plaintiff filed a suit for recovery of the principal sum as well as futher interest by way of damages. The defendant did not dispute the transaction as well as the non-payment, but, contended that the suit was not maintainable since the plaintiff was carrying on business of money -lending without holding a licence for money-lending as mandated by the Act. The trial Court upheld this defence and dismissed the suit. The Appellate Court reversed the judgment and decree, and ordered the defendant to pay a sum of Rs. 19,325/- inclusive of interest, costs, and future interst at 6% per annum on Rs. 15,000/- from the date of suit till realisation. The first Appellate Court took the view that.