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- Jurisdiction of the civil court to decide if a liability is a debt under the Bengal Agricultural Debtors Act - Impact of the amendment in 1940 on the jurisdiction of the Debt Settlement Board - Retroactive application of procedural changes in legislation Analysis: 1. The case involved a dispute where the respondents obtained a money decree against the appellants for the price of Barga crops. The appellants sought relief under the Bengal Agricultural Debtors Act by filing an application before the Debt Settlement Board. The Munsif initially stayed the execution proceedings, but the respondents objected, claiming that the liability under the decree was not a debt as per the Act. The Munsif agreed and vacated the stay order, a decision upheld by the First Appellate Court and Henderson J. This led to the appeal by the judgment-debtors challenging the decision (Para. 1). 2. The appellants argued that after the amendment in 1940, only the Debt Settlement Board had jurisdiction to decide if the liability under the decree qualified as a debt under the Act. The amendment empowered the Board to make such determinations, thereby excluding the civil court's jurisdiction. The dispute arose post the amendment, raising the question of whether the Munsif had the authority to decide on the nature of the liability. Reference was made to a previous case to support the argument (Para. 2). 3. The judgment discussed the principle that legislative changes affecting procedure generally apply retrospectively unless specified otherwise. It distinguished between substantive rights and procedural matters, emphasizing that changes in procedure typically impact pending as well as future actions. The distinction between substantive law governing rights and procedural law governing court processes was highlighted (Para. 3). 4. The court concluded that if a debtor's liability did not qualify as a debt under the Act, the creditor had the right to recover the full amount. However, if it did, the debtor would receive relief under the Act. The 1940 amendment did not alter these substantive rights but only changed the forum for determining whether a liability constituted a debt. As such, the amendment affected procedural aspects, directing such disputes to the Debt Settlement Board and not the civil court. Consequently, the Munsif lacked jurisdiction to decide on the nature of the liability, and the appeal was allowed, setting aside the previous orders and staying the execution proceedings under the Act. The appellants were awarded costs (Para. 4).
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