Vijay Kumar (Advocate) 04 May 2008

moneylender's licence

Whether the debt without having the licnce is legally enforceable within the meaning of the NI Act?

11 Replies

Ajay kumar singh (Advocate) 05 May 2008

yes. But the money lent can be realised through a MONEY SUIT/CIVIL SUIT. There must be some documentary evidence to show that the mnney was lent.

Emily Ngursangzuali Sailo (Legal Officer) 07 May 2008

Can Parliament legislate on matters relaitng to Public health being a State List??

J K Agrawal (Advocates) 10 May 2008

Sir The NI Act only regulate the Negotiable Instruments like Cheque, Bill of Exchange and it does not have any relation with enforceability of consideration. If a cheque is given it can be enforced as per N I Act. But the plea is always available that the consideration was not valid or not enforceable. Your problem is regulated by Money Lenders Act, applicable in your state. Generally All Money Lenders Act prohibits the recovery of Loan amount advanced without license. (But there is a clog that the person advancing the money should be professional and habitual of money lending business. One to some instance of advancing loan is not amounting to "doing money landing business without licence")

Vijay Kumar (Advocate) 10 May 2008

Thank you very much, sir for responding.I am representing the accused in a cheque dishonour case; and in the cross-examination, the admission of the complainant has come on the record that he is doing money lending as a business and does not have a licence.To my mind,the above cheque money is beyond the purview of "legally enforceable debt". May you please help me with supporting case-laws.

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE ) 11 May 2008

Yes you are right. While you can search case laws but in my opinion you can make a case law in this matter for others to refer. You have not mentioned the place/ state where this case belongs. Please get the copy of the money lenders act of your State and immediately file acomplaint with the desinted authority under the related money lenders Act of your State agains the person who had lent money without liesence., and submit the copy in your case. If you want to gain time to provide the trial Court to come for definite conclusion in favour of your client, immediately file an application to quash the proceedings against your client. In all probability the trial Court will hear both sides on this matter and pass as order. If the oder of the trial court goes against you that is the trial court does not pass any order or rejects your application ; immediately go for revision on this specific point only and seek stay of proceddings in the trial Court from the revisional Court. Meanwhile agrressively persue the matter under the money lenders Act as sugggested above. You can also initiate criminal procedings against the complainant for filing a case under NIA against your client for illegal claim and also creating, fabricating and producing false evidense in Court of Law. You can also file a criminal contempt petition for attempting to prejudice the trial Court against your client rsulting in issue of process uner the NIA .But far all this you have to take guidance from a Senior Advocate.

Guest (n/a) 11 May 2008

it is good to be a member of this kind of club.THANKS.

Vijay Kumar (Advocate) 12 May 2008

Sir, the case belongs to the State of Punjab.Thanks for providing guidance.

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE ) 13 May 2008

Mr Vijaykumar continue as suggested and post the progress of your case for benefit of others .

Bhaskaran Advocate (Lawyer) 14 June 2008

Once the complainant agrees that he is a moneylender then it is imperative for him to produce the licence.

Under all probability he is having a licence lest he would not have accepted the same.

If he never produces the same then you have a good case, there are citations regarding this, present that, while doing the argument.

Vijay Kumar (Advocate) 08 July 2008

Sir, I have come across a case law directly applicable to the present proposition. It is Krishnam Raju Finanaces v. Abida Sultana & others; Criminal Appeal No.333 of 1998 decided on 16-3-2004 by the Hon'ble Andhra Pradesh High Court. Citation is : 2004(3) RCR (Criminal) 284.

Regards

Vijay Kumar LL.M. Advocate

Muktsar (Punjab)