1940 (11) TMI 28

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....n is whether the lower Court was right in re-opening the transaction on which the suit is founded. The suit is based on a promissory note dated 20th December 1936, which in turn is based on a bond of 28th June 1933. If the transaction can be re-opened then the further question arises whether a repayment of Rs. 55 has been proved. The lower Court has evidently reopened the transaction although it h....

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....Rs. 55 has been proved. No evidence has been taken in the case, and the lower Court has proceeded upon the pleadings. The plaintiff stated that he did not remember whether any payment had been made towards the previous bond, also that the amount stated in the promissory note was reached by calculating interest on the sum due on the bond at 2 per cent, compound. The lower Court made a calculation, ....

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....ly an isolated act of money-lending is shown to the Court it is impossible to state that that constitutes a regular course of business. It is an act of business, but not necessarily an act done in the regular course of business. Consequently, the lower Court was wrong in applying this Act. 3. It was argued that the burden is, on the plaintiff to prove that he is not a moneylender. That however ....

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....duction of Interest Act. The original loan was advanced long before the Act came into force, and consequently no question of vested interests arises. In fact, if anybody has vested interests which has been affected it is the plaintiff because on the date when he lent his money there was no thought in any one's mind that his interest would be arbitrarily reduced by the Legislature. The Act was ....