M J BROTHERS Vs. AMAR FINANCE AND ESTATE

JUDGEMENT

(1.) AN interesting question is raised in this appeal in regard to the obligation of the Court in transactions covered by the Bombay Money-lenders Act, 1946.

(2.) THE respondents are money-lenders. They had made various advances to the appellants prior to 30th November, 1979. They filed against the appellants a Summary Suit (being Summary Suit No. 1332 of 1980) for the recovery of Rs. 3,41,917/-, whereof Rs. 3,00,000/- was the principal amount. The appellants filed in that suit a petition under section 30 of the Act for taking an account of the transactions between themselves and the respondents. An agreement was then arrived at and recorded on 19th June, 1981. There under the appellants agreed to pay to the respondents the sum of Rs. 3,00,000/- without interest by the instalments therein mentioned. The summary suit was withdrawn and the petition under section 30 dismissed. The appellants committed defaults in making payment of the instalments provided under the agreement. Thereupon the respondent filed the present suit. The appellants again filed a petition under section 30. The respondents contested it. The learned Single Judge took the view that the petition was not maintainable and dismissed it.

(3.) SECTION 30 of the Act entitles a debtor to make an application to Court for taking accounts and for declaring the amount payable by him to a money lender. The Court is then obliged to make an inquiry and, after taking an account of the transactions between the parties, to pass an order declaring the amount payable in respect of principal and interest, if any. In taking such account the Court is obliged to follow, inter alia, the procedure under section 29. Section 29 reads thus :