13. Power of Court to re-open certain transaction.
- In any suit brought by a money lender before or after the commencement of this Act in respect of a loan advanced before the commencement of this Act or in any appeal or proceeding in revision arising out of such suit, the Court may exercise all or any of the following powers:-(a)re-open the transaction, take an account between the parties, and relieve the debtor of all liability in respect of any simple interest in excess of twelve per centum per annum in the case of secured loan and fifteen per centum per annum in the case of an unsecured loan;(b)notwithstanding any agreement purporting to close previous dealings and to create a new obligation, re-open any account already taken between them and relieve the debtor of full liability in respect of any simple interest in excess of twelve per centum per annum in the case of a secured loan and fifteen per centum per annum in the case of an unsecured loan;(c)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 money lender has parted with the security, order him to identify the debtor in such manner and to such extent as it may deem just;(d)direct the money-lender to repay to the debtor any amount which the money lender has realised from the debtor in excess of the amount which he is entitled to realise under this Act.Provided that in the exercise of these powers, the Court shall not re-open any agreement purporting to close previous dealing and to create a new obligation which has been entered into by the parties or any person from whom they claim at a date more than twelve years before the institution of such suit.
