(1)Notwithstanding anything in the Usury Laws Repeal Act, 1855, where, in any suit to which this Act applies, whether heard ex parte or otherwise. the Court has reason to believe :-(a)that the interest is excessive; and(b)that the transaction was, as between the parties thereto, substantially unfair,the Court may exercise all or any of the following powers, namely, may,(i)re-open the transaction, take an account between the parties, and relieve the debtor of all liability in respect of any excessive interest;(ii)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 all liability in respect of any excessive interest, and if anything has been paid or allowed in account in respect of such liability, order the creditor to repay any sum which it considers to be repayable in respect thereof;(iii)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 creditor has parted with the security, order him to indemnify the debtor 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)re-open any agreement purporting to close previous dealings and to create a new obligation which has been entered into by the parties or any persons from whom they claim at a date more than [twelve] [Substituted by Act 28 of 1926,/section 3, for 'six'.] years from the date of the transaction;(ii)do anything which effects any decree of a Court.Explanation. - In the case of a suit brought on a series of transactions the expression "the transaction" means, for the purposes of proviso (i), the first of such transactions.
