TaxTMI 
TaxTMI 
1978 (2) TMI 228
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.... the defendant. That he complied with the provisions of the Money Lenders Act, namely, sending statements, maintaining accounts and such other formalities. The grain was to be returned with interest which was agreed. Since, however, the defendant did not repay the loan of grain, either in the form of grain or in cash, the plaintiff brought this suit. 3. The defendant apart from denying the claim of the plaintiff, raised a contention that the claim was not enforceable by reason of the Maharashtra Scheduled Foodgrains (Stocks Declaration and Procurement and Disposal, Acquisition, Transport and Price Control) Order, 1966. The trial Judge accepted the contention and dismissed the plaintiff's suit. It is against this judgment and decree tha....
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....s Act does, is that it permits loans being made in a certain manner. But that does not mean that the Bombay Money-lenders Act is not subject to other laws or any person dealing in money-lending or carrying on business of money-lending would not be governed by other laws dealing with money lending or dealing with other commodities which can become the subject-matter of loan. If a commodity or item of property becomes the subject-matter of any other control or law, then even if it could be a loan by a money-lender if the transaction is in contravention of such rule or law then that transaction, notwithstanding that the Bombay Money-lenders Act otherwise permits it, would not be permitted. It is only if the other laws permit the disposal or de....
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....ion for services? (iii) to a labourer or servant employed by him, as wages in kind; (iv) to such educational philanthropic and charitable institutions as may be approved by the Collector in this behalf, subject to such conditions as he may impose, as donations in kind," XX XX XX It will thus be seen that clause prohibits sale or disposal, otherwise by a person who is not an authorised dealer or recognised dealer in foodgrains. 7. It was sought to be urged that by lending foodgrains, the plaintiff has not sold them. It was also contended that the property in the foodgrains has not passed and that the expression "otherwise dispose of" is incapable of covering a transaction of this kind. I am unable to agree. The word ....
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....all agreements which are void ab initio, including agreements based upon an unlawful consideration. If this view be correct, it follows that the person who has paid money or transferred property to another for an illegal purpose can recover it back from the transferee under this section, even if the illegal purpose is carried into execution and both the transferor and transferee are in pari delicto. It is difficult to suppose that such a result was contemplated by the legislature. Moreover, it would not be correct to say that, where a person gives money for an unlawful purpose, the agreement under which the payment is made can be, on his part, discovered to be void. On the other hand, it has been said that the present section does not apply....