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Ugrah Dusadh Versus Inderdayal Singh

1953 (8) TMI 23 - PATNA HIGH COURT

A.F.A.D. No. 1465 of 1950 - Dated:- 14-8-1953 - Misra, J. For Appellant: Gorakh Nath Singh, Adv. For Respondents: Dasu Sinha, Adv. JUDGMENT Misra,. 1. This is a defendant's appeal arising out of a suit by the plaintiff-respondent for recovery of a sum of ₹ 496/- as principal and ₹ 178-8-0 as interest, on the basis of a hand-note dated 27-12-1942. 2. It was alleged that the defendant borrowed the sum under the hand-note with promise to pay the same on demand along with interest at .....

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plea taken was that the plaintiff was a regular money-lender, and under Section 4, Bihar Money Lender's (Regulation of Transactions) Act (7 of 1939) he could not recover the amount, if any, advanced by him as he was not a registered money-lender. 4. The learned Munsif held that the hand-note was genuine, but the plaintiff was not a registered money-lender, and as such he could not recover the loan advanced by him to the defendant. 5. On appeal, the learned Subordinate Judge came to the conc .....

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gal Money-Lenders' Act the loan evidenced under promissory notes was not covered by the prohibitory provisions of the Money-Lenders' Act. But it may be stated that the case considered by the Federal Court of India, to which reference was made in - AIR 1945 Pat 297 (A)', went in appeal before the Judicial Committee, and it was clearly held by their Lordships of the Judicial Committee in that case which came to be reported as -'Prafulla Kumar Mukherjee v. Bank of Commerce Ltd., Khu .....

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, or, in certain circumstances, if the loan advanced by him in any particular year did not amount to above ₹ 500/-as required under the notification to which reference has been made in the case of - 'Rai Shyam Bahadur v. Rameshwar Prasad' AIR Pat 441 (C). 6. Mr. Gorakh Nath Singh appearing on behalf of the appellant has drawn my attention in this connection to the Division Bench ruling of this Court in the case of - 'Meghraj Tibrawala v. Panchu Sahu' AIR 1952 Pat 39 (D), wh .....

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ofessional moneylender, who alone is contemplated under Section 4, Bihar Money-Lenders' Act. He has drawn my attention in this connection to the case of -'Bhutnath v. Nilkantha' AIR 1949 Pat 400 (E) and to the case of - 'Mt. Surajbansi Kuer v. Mt. Larho Kuar', AIR 1946 Pat 310 (F) in both of which their Lordships took the view that in a case where plaintiff was only a casual moneylender so that the money was advanced to a friend in distress or as an accommodation loan, Sectio .....

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e of liability incurred by the defendant, because he purchased some timber from a certain timber merchant, and as he was not able to pay up the price, he executed a hand-note as evidence of his liability. It was, therefore, a case of accommodation. Those are some of the instances in which the plaintiff may prove that he was a casual money-lender, and not a regular money-lender as contemplated by Section 4, Bihar Money-Lenders' Act. Mr. Dasu Sinha has also drawn my attention to the case -  .....

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view that the crux of the matter was whether money was being advanced by the plaintiff purely as a money-lender for the purpose of gain having no other consideration before him or, was it mixed up with other consideration than that of pure gain and for interest. With all respect, the observations made in this decision and the reasoning followed are quite sound and I do not think that there is any difference in principle in the cases decided in this Court and that decided in the Allahabad High C .....

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sons other than the present defendant. In these circumstances, onus lay upon the plaintiff to prove the circumstances in which he could claim exemption from the provisions made in Section 4, Bihar Money-Lenders' Act. Mr. Dasu Sinna has urged that onus lies on the defendant to prove that the plaintiff is a professional moneylender. I am unable to accede to this contention, because what the defendant in this case did was to plead that the plaintiff not being registered as a money-lender could .....

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