(1)Notwithstanding anything contained in any law for the time being in force, the court shall, in any suit to which this Act applies, whether heard ex-prate or otherwise -(a)reopen any transaction, or any account already taken between the parties;(b)take an account between the parties;(c)reduce the amount charged to the debtor in respect of any excessive interest;(d)if on taking accounts, 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:Provided that in the exercise of these powers, the court shall not -(i)reopen any adjustment or agreement purporting to close previous dealings and to create new obligations which have been entrusted into by the parties or any person through whom they claim at a date more than six years from the date of the suit,(ii)do anything which affects any decree of a court.Explanation. - For the purpose of this section, "excessive interest" means interest at a rate which contravenes any of the provisions of section 33.(2)(i)Notwithstanding anything to the contrary contained in any law, custom or contract, where in any such suit, it is alleged by the debtor -(a)that the loan was advanced to him by the Money-Lender either before or after the appointed day, not in fact on the security of any property held by him but that the loan was actually advanced to him on his transferring by way of sale of such property to the Money-Lender or to a relative of the Money-Lender, or(b)that the transaction was in fact in the nature of a mortgage, the court shall declare the transaction to be a sale or, as the case may be, a mortgage, if the court is satisfied that the circumstances connected with the transaction showed the transfer to be in the nature of a sale or a mortgage and thereupon the court shall proceed accordingly.(ii)In any such suit, if such relative has not been impeded as a party, the court shall declare such relative to be a party to such suit.Explanation. - For the purpose of this sub-section, the expression "relative" shall mean any ascendant to the second degree and his descendant to the third degree and spouse of any such ascendant or descendant.
