Section 36(1) in The Bengal Money-Lenders Act, 1940
(1)Notwithstanding anything contained in any law for the time being in force [or in any agreement] [Words Inserted by W.B. Act 21 of 1965.], if in any suit to which this Act applies, or in any suit brought by a borrower for relief under this section whether heard ex-parte or otherwise, the Court has reason to believe that the exercise of one or more of the powers under this section will give relief to the borrower, it shall exercise all or any of the following powers as it may consider appropriate, namely, shall-(a)reopen any transaction and take an account between the parties;(b)[ reopen any account already taken between the parties, purporting to close any previous dealings and to create new obligations;] [Clause (b) Substituted by W.B. Act 21 of 1965, which was earlier as under:- '(b) notwithstanding any agreement, purporting to close previous dealings and to create new obligations, reopen any account already taken between the parties:'.](c)release the borrower of all liability in excess of the limits specified in clauses (1) and (2) of section 30;(d)if anything has been paid or allowed in account on or after the first day of January, 1939, in respect of the liability referred to in clause (c), order the lender to repay any sum which the Court considers to be repayable in respect of such payment or allowance in account as aforesaid:Provided that in the case of a loan to which the provisions of subsection (2) of section 29 apply the lender or money-lender and each of his assigness shall be liable to repay the sum which the Court considers to be repayable in respect of and in proportion to the sum received by such lender or money-lender and such assignee;(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 indemnify the borrower in such manner and to such extent as it may deem just: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 has been entered into, at a date more than twelve years prior to the date of the suit by the parties or any person through whom they claim, or(ii)do anything which affects any decree of a Court, other than a decree in a suit to which this Act applies which was not fully satisfied by the first day of January, 1939, or anything which affects an award made under the Bengal Agricultural Debtors Act, [1936] [Figures Substituted for the figures '1935' by W.B. Act 7 of 1948.],Explanation.- A decree shall not, for the purposes of this section, be deemed to have been fully satisfied so long as there remains undisposed of an application by the decree-holder for possession of property purchased by him in execution of the decree.
