In Brief
A plaintiff sought to recover a property through a suit for declaration of title, injunction, and redemption of security under the Bengal Money-Lenders Act, 1940. The defendants claimed a written agreement (Kabala) dated 1970 was an outright sale; the plaintiff contended it was a secured loan. The trial court dismissed the suit, but the First Appellate Court and High Court reversed, finding the plaintiff remained in possession after execution and the price was shockingly disproportionate—both factors indicating a loan transaction. The Supreme Court dismissed the defendants' appeal, affirming the concurrent findings and holding that substance prevails over form in characterizing transactions under the moneylending legislation.
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