SIBA PRASAD MISRA Vs. MTNURABATI ZAMINDARIANI

JUDGEMENT

(1.) The questions, referred to the Full Bench are: (1) Whether Section 10, Orissa Money-lenders Act (Act III

(3.) of 1939), as amended by Section 4, Orissa Moneylenders Amendment Act (Act XVIII

(18.) of 1947), is retrospective so as to control decrees to be passed in suits and appeals brought before, bat pending at the time, of the commencement of the Amending Act; and (2) whether in giving effect to the provisions of the section, in a suit based on an agreement by which the parties have agreed to treat the sum-total of the past liabilities, in respect of sum actually lent and the unpaid balance of interest due thereon, as the principal of a fresh loan- transaction, carrying stipulated rate of interest for the future, the Court can go behind the said agreement and limit the decree on account of interest, for the period preceding the institution of the suit, to a sum, which together with any amount already realised as interest, is not greater than the amount originally advanced; or In other words, whether in such a suit, the debtor can be relieved of all liabilities in respect of capitalised interest due on accounts stated and agreed to be treated as principal or part thereof, notwithstanding an agreement to the contrary except so much as together with the amount realised does not exceed the amount originally advanced as a loan.