Section 32 in The Karnataka Money-Lenders Act, 1961
32. Reopening of transactions.—
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 parte 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 entered 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 28.
