Surendra Singh Bengani vs Ashok Chaudhry
2021 Latest Caselaw 92 Cal/2

ORDER SHEET
                                                                           OC-9

                               CS/11/2021
                            IA NO.GA/1/2021
                    IN THE HIGH COURT AT CALCUTTA
                  ORDINARY ORIGINAL CIVIL JURISDICTION
                         COMMERCIAL DIVISION


                           SURENDRA SINGH BENGANI
                                  VERSUS
                              ASHOK CHAUDHRY


  BEFORE:
  The Hon'ble JUSTICE DEBANGSU BASAK

Date: 29th January, 2021.

(Via Video Conference)

The Court: The application is taken up for consideration subsequent to the

order dated January 21, 2021. Affidavit of service filed in Court be taken on

record.

The defendant is represented.

In a suit for recovery of money lent and advanced, the plaintiff seeks

attachment before judgment, receiver and injunction.

Learned advocate appearing for the plaintiff submits that the defendant

issued balance acknowledgements admitting the sums payable. The defendant

did not pay despite demands. The defendant is not repaying the loan amount.

He prays for appointment of a Receiver and for an order of injunction.

Learned advocate appearing for the defendant submits that the instant suit

is not maintainable inasmuch as, the plaintiff does not possess due licence under

the Bengal Money Lenders Act, 1940. He submits that the claim of the plaintiff is

secured by the pledge of shares. The defendant repaid a substantial portion of

the money to the plaintiff. He seeks directions for filing affidavits.

In the facts of the present case, it appears that the parties entered into a

transaction whereby and whereunder the plaintiff lent and advanced money to

the defendant on pledge of shares by the defendant. There are amounts due and

payable by the defendant to the plaintiff. At this stage, it would be appropriate to

pass an order in terms of prayer (e) of the petition.

The provisions of the Bengal Money Lenders Act, 1940 do not prevent

institution of a suit or passing interim orders in such suit. The issue as to

whether, a decree can be passed without a valid licence under the Act of 1940

and whether, the provisions of the Act of 1940 are attracted in the facts of this

case are best decided after affording the parties an opportunity to file affidavits.

Let affidavit in opposition be filed within two weeks from date; reply

thereto, if any, within a week thereafter. List the application as "Adjourned

Motion" three weeks hence.

(DEBANGSU BASAK, J.)

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