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HIGH COURT OF MADHYA PRADESH
Vivek Rusia, J.
Mahesh Palod v. Assistant Commissioner (License) & others
Writ Petition (Criminal) No. 6624 of 2018 (Indore);
Decided on 28.2.2019.
-- upon receipt of application, it is not mandatory for registering authority to issue a certificate without imposing any condition. [Para 13
(2) Money-Lenders Act, 1934 (M.P.) -- S.11-B -- M.P. Municipal Corporation Act, 1956 -- S.366 -- Municipal Corporation has power to prescribe conditions for money-lending business -- imposition of condition of declaration of character verification be applicant before starting business of money lending -- not arbitrary and contrary to provisions of Money Lenders Act and Municipal Corporation Act -- requiring deposit of fee for registration and separate fee for obtaining trade license -- even if there is no condition under Money- Lenders Act for obtaining money lending license -- in order to do business or trade under Municipal Corporation Act, the Municipal Corporation is certainly competent to impose conditions in public interest.
Held: Since the money-lending is a business within the area of any Municipal Corporation therefore each Municipal Corporation is having right to control the manner of the business, therefore, the Corporation is also having power to prescribe the conditions to do the said money-lending business. Municipal Corporation Indore has imposed one of the condition for declaration of a character verification by the applicant before starting the business of money lending which cannot be said to be arbitrary and contrary to the provisions of Money Lending Act and Municipal Corporation Act.
Therefore, even if under the M.P. Money Lenders Act,1934 there is no condition for obtaining a money lending license, but in order to do the business or trade under the Municipal Corporation Act,1956 the Municipal Corporation is certainly competent to impose the conditions in the public interest. (1995)6 SCC 289, (1971)2 SCC 222 and (2016)15 SCC 330 followed. (2006)4 SCC 327 and (2003)3 SCC 321 referred to.
(3) Constitution of India -- Art. 227 -- scope -- refusal of grant of money lending licence -- alternative and efficacious remedy of appeal available -- writ petition dismissed with limitted liberty to file appeal. [Para 21
(4) Words and Phrases -- character -- is not dependent upon conviction or acquittal -- good or bad character can be certified on satisfaction of authority issuing the character certificate. [Para 21
(5) Constitution of India -- Art. 227 -- M.P. Money-Lenders Act, 1934 -- S.11-B -- M.P. Municipal Corporation Act, 1956 -- S.403 -- order of Commissioner granting or refusing license and permission for money lending -- is appealable -- petitioner has alternative and efficacious remedy for appeal against refusal of license -- interference declined. [Para 21
¼1½ lkgwdkj vf/kfu;e] 1934 ¼e-iz-½ && /kkjk 11&[k && jftLVªhdj.k izkfèkdkjh ds fy, izek.ki= tkjh djuk ;k ugha djuk lnSo gh oSosfdd gksrk gS && vkosnu dh izkfIr ij] dksbZ 'krZ vf/kjksfir fd, fcuk izek.k i= tkjh djuk jftLVªhdj.k izkf/kdkjh ds fy, vkKkid ugha gSA ¼iSjk 13
¼2½ lkgwdkj vf/kfu;e] 1934 ¼e-iz-½ && /kkjk 11&[k && e-iz- uxj fuxe vf/kfu;e] 1956 && /kkjk 366 && uxj fuxe ds ikl lkgwdkjh dkjckj djus ds fy, 'krs± fofgr djus dh 'kfDr gS && lkgwdkjh dk dkjckj izkjaHk djus ds iwoZ vkosnd }kjk pfj= lR;kiu dh ?kks"k.kk dh 'krZ dk vf/kjksi.k && euekuk rFkk lkgwdkj vf/kfu;e ,oa uxjfuxe vf/kfu;e ds mica/kksa ds izfrdwy ugha && jftLVªhdj.k gsrq 'kqYd rFkk O;kikj ykblsUl izkIr djus gsrq i`Fkd~ 'kqYd dk fu{ksi visf{kr && Hkys gh lkgwdkjh ykblsUl izkIr djus ds fy, lkgwdkj vf/kfu;e ds v/khu dksbZ 'krZ ugha gS && uxj fuxe vf/kfu;e ds v/khu dkjksckj ;k O;kikj djus ds fy, uxj fuxe yksdfgr esa 'krs± vf/kjksfir djus ds fy, fuf'pr :i ls l{ke gSA
vfHkfu/kkZfjr % D;ksafd lkgwdkjh uxjfuxe {ks= ds Hkhrj fd;k tkus okyk dkjckj gS] vr% izR;sd uxj fuxe ds ikl dkjckj dh jhfr fu;af=r djus dk vf/kdkj gksrk gS] blfy,] fuxe ds ikl mDr lkgwdkjh] dkjckj djus ds fy, 'krs± fofgr djus dh 'kfDr Hkh gksrh gSA uxj fuxe] bankSj us lkgwdkjh dkjckj izkjaHk djus ds iwoZ vkosnd }kjk pfj= lR;kiu dh ?kks"k.kk dh 'krZ vf/kjksfir dh gS ftls euekuk rFkk lkgwdkjh vf/kfu;e ,oa uxj fuxe ds vf/kfu;e ds mica/kksa ds izfrdwy ugha dgk tk ldrkA
vr%] Hkys gh e-iz- lkgwdkj vf/kfu;e] 1934 ds v/khu lkgwdkjh ykblsal izkIr djus dh dksbZ 'krZ ugha gS] ijarq uxj fuxe vf/kfu;e] 1956 ds v/khu dkjckj ;k O;kikj djus gsrq uxj fuxe yksdfgr esa 'krs± vfèkjksfir djus ds fy, fuf'pr :i ls l{ke gSA ¼1956½6 ,l lh lh 289] ¼1971½2 ,l lh lh 222 rFkk ¼2016½5 ,l lh lh 330 vuqlfjrA ¼2006½4 ,l lh lh 327 rFkk ¼2003½3 ,l lh lh 321 fufnZ"VA
¼3½ Hkkjr dk lafo/kku && vuq-227 && O;kfIr && lkgwdkjh ykblsUl nsus ls bUdkj vihy dk oSdfYid rFkk izHkkodkjh mipkj miyC/k && vihy izLrqr djus dh lhfer Lora=rk lfgr fjV ;kfpdk [kkfjt dh xbZ¼iSjk 21
¼4½ 'kCn rFkk okD;ka'k && pfj= && nks"kflf) ;k nks"keqfDr ij vkfJr ugha gksrk && pfj= izek.ki= tkjh djus okys izkf/kdkjh ds lek/kku ij vPNk ;k cqjk pfj= izekf.kr fd;k tk ldrk gSA ¼iSjk 21
¼5½ Hkkjr dk lafo/kku && vuq-227 && e-iz- lkgwdkj vf/kfu;e] 1934 && èkkjk 11&[k && e-iz- uxj fuxe vf/kfu;e] 1956 && /kkjk 403 && ykblsUl rFkk lkgwdkjh dh vuqKk eatwj ;k ukeatwj djus dk vk;qDr dk vkns'k && vihyuh; && ;kph ds ikl ykblsUl dh ukeatwjh ds fo#) vihy dk oSdfYid rFkk izHkkodkjh mipkj gS && gLr{ksi ls bUdkj fd;k x;kA ¼iSjk 21
1. Heard.
2. The petitioner has filed the present petition being aggrieved by order dated 26.4.2017, passed by the Asst. Commissioner (License) Municipal Corporation, Indore, (respondent No.1) whereby the application submitted by him in order to obtain Money Lenders licence under section 11-B of the Madhya Pradesh Money-Lenders Act, 1934, has been rejected.
3. Facts of the case in short are as under :
The petitioner is permanent resident of Indore and the Municipal Corporation Indore is body incorporated under the provisions of Municipal Corporation Act, 1956, represented through Commissioner. According to the petitioner, in the year 2007-08 and 2008-09 he had a license to do the money lending business Thereafter, he submitted an application on 24.1.2014, before the respondents for obtaining the registration certificate of money lending license . Thereafter, he again submitted an application on 1.8.2015 in prescribed format along with the requisite fee. Thereafter, he visited the office of respondents and also served a legal notice. Despite of the aforesaid, when his application was not considered he filed a Writ Petition No. 6259/2016 before this high Court . By order dated 9.9.2016, the writ petition was disposed of with a direction to the respondents to consider the application in accordance with law. In compliance of the order of the High Court, the petitioner again submitted a representation and finally by impugned order dated 26.4.2017, the respondent No. 1 has rejected the application due to registration of three criminal cases against him. Hence, the present petition before this Court.
4. The petitioner has assailed the impugned order on the ground that under section 11(B) of the M.P. Money Lenders Act, 1934, every person who carries or intends to carry the business of money lending is required to get himself registered by submitting an application to the registering authority of that area. There is no requirement of character certificate and there is no discretion left to the registering authority to reject the application. Therefore, the learned registering authority on an exterior consideration has wrongly rejected the application. The petitioner is having fundamental right to do the business and the impugned action of the respondents is in violation of Article 14, 21 and 41 of the Constitution of India.
5. The respondents have filed a return by submitting that initially the Tahsildar was a competent authority to issue money lending license. Thereafter, by way of Madhya Pradesh Money Lenders (Amendment) Act, 2000, word ‘Tehsildar’ has been replaced by ‘Registering Authority’ and as per the definition of registering authority the Municipal Corporation has been made registering authority for urban areas. A brief note was prepared by the committee and forwarded to the Secretary Mayor incouncil vide letter dated 9.10.2017. Thereafter, the Mayorin- council has passed the Resolution No. 81 on 10.10.2017, approving the mandate and the brief prepared by the committee for grant of license under Madhya Pradesh Money Lenders Act, 1934. Thereafter, vide order dated 2.4.2018 the Municipal Corporation has delegated power to issue the license to the respondent No. 1.
6. It is further submitted that the Municipal Corporation by way of Resolution has proposed that no license be issued to any money lenders who has a negative character (criminal antecedents) verified by the police. The petitioner applied for issuance of grant of money lending license and thereafter, the respondents have requisitioned information for his character verification from the Station In-charge Police Station, Sanyogitaganj. The police Sanyogitaganj vide letter dated 4.4.2017, has informed that there are 3 criminal cases are pending against the petitioner in the matter of extortion, voluntary causing hurt trespass and criminal intimidation for recovery of loan amount. Since the petitioner is not having the character certificate issued by the police therefor
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