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TMI Blog1978 (2) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... isions 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 that the present revision applications are file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 dealing with a particular property in kind, the Bomb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of nagli, 5 kilograms; (ii) to any village artisan or other person entitled to receive foodgrains as a customary remuneration 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 pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vations are:-- On the one hand it has been said that the words agreement discovered to be void apply to 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, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll go to show that where the unlawful purpose of an agreement was known to the parties or the fact of the unlawful purpose could be imputed to them, then the agreement would be outside the ambit of Section 65. Imputation of the knowledge of an illegality where the illegality flows from operation of the law, I think, has to be imputed to a party, because ignorance of a statutory provision cannot be set up as a defence. Besides, as has been pointed out, the Court will not assist a party, who in assisting the other party would be a perpetrator of an illegality or to continue an illegal conduct or fraud of the parties. 11. In the present case since Clause 10 of the Foodgrain Order, in my view, was applicable to the transaction between the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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