Bona fide assignee protection under the Bengal Money-Lenders Act prevents reopening a pre-Act decree against the decree-holder.

Relief under the Bengal Money-Lenders Act, 1940 could not be used to defeat a pre-Act decree held by a bona fide assignee for value. Sections 28 and 29 applied only while the lender-borrower relationship continued and did not control a loan after merger into judgment; Section 30 gave only a defence as to the amount recoverable and did not reopen an existing decree. Although Section 36 allowed reopening of past transactions and decrees, Section 36(5) protected an assignee or holder for value acting bona fide and without notice, and that protection applied here. The decree therefore remained effective against the borrower.

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Issues: Whether relief under the Bengal Money-Lenders Act, 1940 could be granted against a bona fide assignee for value of a decree passed before the Act, where the decree had not been fully satisfied and the original loan transaction was within the Act.

Analysis: Sections 28 and 29 deal with assignment of loans while the lender-borrower relationship continues and do not apply after the loan has merged in a judgment. Section 30 gives only a defence as to the quantum recoverable and does not by itself reopen an existing decree. Reopening of past transactions and decrees is provided by Section 36, but Section 36(5) protects the rights of an assignee or holder for value if the assignment was bona fide and notice had not been received. The assignee in this case satisfied those requirements. The Court rejected the view that the protection failed merely because statutory notice could not have been given before the Act came into force, and held that the Act could not be used to bypass Section 36 by a declaratory suit under other procedural provisions.

Conclusion: Relief against the assignee was not maintainable, and the decree of the High Court could not stand.

Final Conclusion: Relief under the Act could not be granted so as to defeat a pre-Act decree in the hands of a bona fide assignee for value, and the original decree remained effective.

Ratio Decidendi: Statutory relief reopening a pre-existing decree cannot be used against a bona fide assignee for value where the protective proviso of the reopening provision applies and the decree has not been fully satisfied.

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