MEGHRAJ TIBRAWALA Vs. PANCHU SAHU TELI

JUDGEMENT

(1.) This is a second appeal by the plaintiff, and the principal point of law which arises for consideration is whether the suit brought by the appellant for the recovery of a certain sum of money on a hand-note executed on the 21st July 1944, was barred by reason of the provisions of Section 4 of the Bihar Money-Lenders (Regulation of Transactions) Act, 1939.

(2.) The facts are these. The appellant alleged that on the 21st of July 1944, defendant No. 1 executed a hand-note for Rs. 2,500/- in favour of the appellant, and promised to pay on demand the amount with interest at the rate of twelve annas per cent per mensem. On the 7th of March 1946, defendant No. 1 paid the sum of Rs. 365/- towards interest, and made an endorsement on the back of the hand-note. Thereafter, no further payment was made in spite of demand. Hence, the suit was brought on the 20th of November 1946. It was alleged that the loan was taken for the benefit of all the defendants, the other defendants being sons of defendant No. 1. After deducting the amount paid on the 7th of March 1946, the appellant laid the claim at Rs. 2,655/- including interest.

(3.) The defence was a plea of payment of way of certain transactions referred in paragraphs 7 and 8 of the written statement. There was a further defence that the appellant was not registered under the Bihar Money Lenders Act, 1938, and therefore, the suit was not maintainable under the provisions of Section 4 of the Bihar Money Lenders (Regulation of Transactions) Act, 1939.