The Marquis of Hastingsmoved, that the opinion of the judges be heard on the construction of the act for regulating the interest of money in India.
Lord Chief Justice Bestaccordingly delivered the opinion of the judges in favour of the bill on the noble marquis. The act for restricting the interest of money to 12 per cent was, he said, to be interpreted according to its letter, as it was a penal statute; and by its literal interpretation it was only to be enforced in the dominions of the company. It could not be construed as extended to Foreign states in alliance with the British power. It could not regulate the transactions of borrowers 1381 or lenders in the dominions of the native princes where British jurisdiction did not extend. If borrowers there suffered from the oppressive acts of those with whom they had money dealings, they might apply for protection to their own government, and not to that of the company. In this construction of the law, he was supported by decisions of the Supreme Court of Bengal.
The bill was read a second time.