(2) Notwithstanding anything contained in any law for the time being in force, in any suit to which this section applies, whether heard ex parte or otherwise, the court may exercise all or any of the following powers— Re-opening of transactions.
(a) re-open any transaction or any account already taken between the parties;
(&) take an account between the parties;
(c) reduce the amount charged to the debtor in respect of any excessive interest;
(d) if on taking account it is found that the money-lender has received more than what is due to him, pass a decree in favour of the debtor in respect of such amount as has been received by the money-lender in excess of what is due to him;
(e) set aside either wholly or in part or revise or alter any security given or agreement made in respect of any loan, and if the lender has parted with the security, order him to 444 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT II indemnify the debtor in such manner and to such extent as it may deem fit:
Provided that in the exercise of any such power the court shall not—
(i) re-open any adjustment or agreement purporting to close previous dealings and to create new obligations, which has been entered into by the parties or any persons through whom they claim, at a date earlier than twelve years prior to the date of the suit, not being a date earlier than the 8th day of October, 1945; or
(ii) do anything which affects any decree of a court other than a decree which has remained unsatisfied in whole or in part at the commencement of this Regulation.
(2) Where any decree passed before the commencement of this Regulation on the basis of a loan, remains unsatisfied in whole or in part at such commencement, the court which passed the decree or the court or other authority to which the decree is sent for execution, may, on application by the judgment-debtor, exercise all or any of the powers specified in sub-section (1) as if such application were a suit to which this section applies.
(3) In this section, the expression 'suit to which this section applies' means any suit or proceeding—
(a) for the recovery of a loan advanced before or after the commencement of this Regulation; or
(b) for the enforcement of any agreement relating to a loan entered into before or after the commencement of this Regulation, whether by way of settlement of account or otherwise or of any security taken in respect of any loan advanced, whether before or after the commencement of this Regulation; or
(c) for the redemption of any security given before or after the commencement of this Regulation in respect of any loan advanced, whether before or after the commencement of this Regulation.
21. (I) Any debtor may, at any time during which any loan taken by him, whether before or after the commencement of this Regulation, remains unpaid in whole or in part, make an application to the court which has jurisdiction to entertain a suit by the moneylender for the recovery of such loan, praying that account in respect of such loan be taken by the court and that the amount due to the money-lender be declared by the court. •
(2) Every such application shall be in writing and shall be accompanied by a fee of one rupee.
Application for taking accounts and declaring amount due to moneylender.
S E C ' : ] THE GAZETTE OF INDIA EXTRAORDINABY 445
(3) Where any application is made under this section, the court shall cause a notica thereof to be served on the money-lender, calling upon him—
(a) to submit in the prescribed form a statement of the loan owed to him by the debtor, and
(b) to produce all documents including entries in books of accounts on which he relies to support his claim in respect of the loan together with a true copy of every such document.
(4) If any money-lender, without reasonable cause, falls to comply with a notice under sub-section (3), the court may declare that the loan, in respect of which the application has been made under this section by the debtor, shall, for all purposes and for all occasions, be deemed to have been duly repaid and that such declaration shall operate as an acquittance for the amount of such loan in the same manner and to the same extent as if that amount had baen received by the money-lender on the date of such declaration.
(5) Where the money-lender has, in compliance with a notice under sub-section (3), submitted a statement of loan and the documents on which he relies to support his claim in respect of the loan, the court shall proceed to take accounts of the loan and shall, after giving a reasonable opportunity to the money-lender and the debtor to be heard and after taking such evidence as it may deem necessary, make an order declaring the amount, if any, payable by the debtor to the money-lender on the date of such order, whether on account of the principal of the loan or on account of interest thereon or on account of both principal and interest.
(6) In taking accounts under this section, the court shall follow, so far as may be, the same procedure as it follows in regard to civil suits and shall exercise the powers conferred on it under subsection (1) of section 20 as if the proceeding were a suit to which that section applies.
(7) Every proceeding under this section shall be deemed to be a suit for the purposes of section 11 of the Code of Civil Procedure, 1908, and the order of the court under sub-section (5) shall, for the purposes of an appeal, be deemed to be a decree of the court.
5 of 1908.
22. Notwithstanding anything contained in the Code of Civil Procedure, 1908, or any other law for the time being in force, a court may, at any time, on application made by a judgment-debtor, and after notice to the decree-holder, direct that the amount of any decree passed against the judgment-debtor, whether before or after the commencement of this Regulation, in respect of a loan, shall be paid in such number of instalments and subject to such conditions and shall be payable on such dates, as, having regard to 5 of 1908.
Power of court to dlr« ect payment of decretal amount by instalments.
446 THE GAZETTE OF INDIA EXTRAORDINARY [PART II the circumstances of the judgment-debtor and the amount of the decree, the court deems fit.