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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Prabhjot Singh - Appellant
Versus
State of GNCT of Delhi - Respondent
W.P.(C) 16632 of 2022 & CM Appl. 52352 of 2022
Decided On : 05-12-2022




A licensed money-lender's application for area extension must be processed without delay when no irregularities exist, ensuring compliance with the governing laws.

Headnote:(A) Money Lending Act, 1938 - Registration of Money Lenders Rules, 1939 - Application for extension of money lending license - Applicant sought extension to Delhi but faced inaction from authorities despite certification of good character from Punjab Authority - Delay in decision justified, leading to direction for timely processing of application. (Paras 2, 5, 9)

(B) Procedure - The Collector should make necessary inquiries for extending the validity of a license - Extension should be processed without undue delay when no irregularities are found. (Paras 7, 9)

Facts of the case:
The writ petition was filed by an appellant holding a money lending license from Punjab seeking extension of his license area to New Delhi, citing misplaced application and delays in processing by the authorities.

Findings of Court:
The SDM, Rajouri Garden is mandated to process the application within three months based on the legislation governing money lending.

Issues: Primarily centered on the unjustified delay in decision-making regarding the application for license extension.

Ratio Decidendi: The court stated that a license-holder is entitled to timely processing of his application when no irregularities exist, thus directing action on the pending application.

Result: Petition disposed of with directions for timely action.

Table of Content
1. petitioner seeks extension of money lending license. (Para 2 , 3 , 4 , 5 , 6)
2. legal basis for license extension. (Para 7)
3. court requires action on application. (Para 8 , 9 , 10)
4. judgment disposed of with directions. (Para 11)

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode.

2. The present writ petition has been filed by the Petitioner - Prabhjot Singh seeking issuance of writ/order directing the Respondent to extend the money lending license already granted to him by the Punjab Government under the Registration of Money Lenders Act, 1938 (hereinafter, `MoneyLending Act') to New Delhi.

3. The case of the Petitioner is that he is a holder of money lending license issued by the Government of Punjab. He intended to extend his business to New Delhi, accordingly, he filed an application for extension of area of license to New Delhi on 10th December, 2020. However, the same was misplaced by the authorities and thus he filed a fresh application on 9th September, 2021. On16th November, 2021 the SDM, Rajouri Garden replied to the same and raised certain queries regarding the license issued to him in Punjab. The said queries were replied by the Deputy Commissioner Office, Amritsar (hereinafter, `Punjab Authority').

4. The Punjab Authority vide its communication dated 19th July 2022 duly certified that there was no irregularity or fraudulent act found against the Petitioner and that the address and other details provided by him were correct. The Punjab Authority also certified that the Petitioner bears good moral character. The said letter reads:

OFFICE OF THE DEPUTY COMMISSIONER, AMRITSAR MA-1 BRANCH

    To

    Office of the Sub Divisional Magistrate

    Rajouri Garden, Plot no.3

    Shivaji Place, Raja Garden, Delhi-27

Dated: 19/07/2022

    No. MA/MS-2/4759

    Subject Regarding application for extension of area of license under the Punjab Registration of Money Lenders Act, 1838

    Ref. Letter Your office letter no.SDM(RG)/Money Lenders/2021/4511

Dated 23.03.2022

    This is to Inform you that a report has been received in this office from the Senior Superintendent of Police Amritsar (Rural) vide letter no. A50/v-3/C.P.R.C Dated 11.06.2022. According to the report, Nothing financial irregularities or fraudulent activities are found against M/s-J.B. Finance. Also; No Complaint/FIR etc, has been lodged against the firm M/S J.B. Finance for any financial irregularities/fraud/cheating. The name and address of Sh. Prabhjot Singh S/o Sh. Manmohan Singh R/o A-200 Dream City Amritsar is correct and he bears good moral Character.

    This is for your information and necessary action.

Sd/-

For Deputy Commissioner

Amritsar"

5. Despite the receipt of the said certification from the Punjab Authority the SDM, Rajouri Garden has not taken any decision in the Petitioner's application seeking extension of area of license.

6. The grievance of the Petitioner is that the Respondent ought to take a decision and the same has been delayed without any valid reasons.

7. Ld. counsel for the Petitioner points out that the MoneyLending Act,along with the Punjab Registration of Money Lenders' Rules, 1939 (hereinafter, `money lending rules') provides that whenever extension of area license is sought, it shall be open to the Collector after making such inquiries as he considers necessary from the Collector of any other district, to extend the validity of a licence so as to include the area of that district.

8. The Court has perused the Act and the Rules and the same are set out below for ready reference:

    "Rule 11, Punjab Registration of Money lenders Rules, 1939

    11. After making such Inquiries as he thinks necessary,the Collector shall, If he finds that there is nothing to debar the grant or renewal of the licence, direct the applicant to deposit within a period of one month. In the Government treasury a sum representing the fee prescribed In Rule 12.

    Section 5, Registration of Money Lenders Act, 1938

    5. Licensing of money-le

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