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2024 Supreme(Online)(KER) 24989
HIGH COURT OF KERALA
P. G. Ajithkumar, J
SELVAN V.K. – Appellant
Versus
RAJESH – Respondent
Crl.MC 397/2016
SRI.V.A.JOHNSON (VARIKKAPPALLIL), SRI.ABRAHAM SAMSON, SMT.LOVELY SAMSON, SRI.RENJITH TR, SR.PP, SRI.JOHN JOSEPH(ROY), SRI.LIJU. M.P-R1, SMT.LILLU L. KRISHNAN, SRI.SAJAN VARGHEESE K.
A valid money lending license negates the applicability of offences under the Kerala Money Lenders Act and the IPC when no intent to cheat is established.
Headnote:
Quash - Criminal Proceedings - IPC Sections 506(1), 420; Kerala Money Lenders Act Sections 3, 17 - The court quashed proceedings against the petitioners, finding no applicable offences under the IPC or the Kerala Money Lenders Act due to valid licensing and lack of criminal intent.
Fact of the Case:
The petitioners sought to quash criminal proceedings against them for alleged offences under the IPC and the Kerala Money Lenders Act, claiming they had a valid money lending license during the relevant period.
Finding of the Court:
The court found that the petitioners held a valid money lending license and that the allegations did not constitute offences under the IPC or the Kerala Money Lenders Act, leading to the quashing of the proceedings.
Issues: Whether the allegations against the petitioners constituted offences under the IPC and the Kerala Money Lenders Act given their valid money lending license.
Ratio Decidendi: The court held that without a valid license or violation of its terms, the offences under the Money Lenders Act could not be applied, and the absence of intent to cheat negated the applicability of IPC Section 420.
Final Decision: All proceedings against the petitioners in the respective cases are quashed.
O R D E R
These Criminal Miscellaneous cases are filed to quash the proceedings in CC No. 1518/2015, CC No. 1520/2015 and 1519/2015 on the file of the Judicial First Class Magistrate Court, Alathur. The same point is raised in these Criminal Miscellaneous Cases and therefore, I am disposing of these Criminal Miscellaneous cases by a common order.
2. Crl.M.C. No.433/2016 is filed to quash the proceedings in CC No. 1518/2015 on the file of the Judicial First Class Magistrate Court, Alathur. The above case is chargesheeted alleging offences punishable under Secs. 506(1) r/w 34 IPC and also under Sec. 3 r/w 17 of the Kerala Money Lenders Act . The prosecution case is that the defacto complainant's son had borrowed an amount of Rs. 50,000/- from the 1st accused and at the time of borrowing the amount, the 1st accused obtained valuable documents including cheque leaves from the defacto complainant and even after repaying the entire amount, the accused did not returned the valuable documents and instead he filed a complaint before the Court demanding Rs.5,00,000/-. Hence, it is alleged that the accused committed the offences .
3. Crl.M.C. No. 397/2016 is filed to quash the proceedings in CC No. 1520/2015 on the file of the Judicial First Class Magistrate Court, Alathur. The above case is filed against the petitioner alleging offences punishable under Sec.420 IPC and Secs.3 and 17 of the Kerala Money Lenders Act . Annexure-D is the final report. The prosecution case is that the accused did not returned the documents of the 1st respondent, who is the defacto complainant, which was given as security while borrowing Rs.40,000/- from him even after repaying an amount of Rs.1,20,000/- . Hence, it is alleged that the accused committed the offences.
4. Crl.M.C. No. 497/2016 is filed to quash the proceedings in CC No. 1519/2015 on the file of the Judicial First Class Magistrate Court, Alathur. Annexure-D is the final report. The offence alleged are under Sec.506(1) r/w 34 IPC and Secs. 3 and 17 of the Kerala Money Lenders Act . The prosecution allegation is that the petitioner lent Rs.2,50,000/- to the 1st respondent - defacto complainant with interest and received valuable documents as security from him without any authority to do so. It is further alleged that the accused also threatened the defacto complainant when demanded back the valuable documents after repaying the borrowed amount with interest. Hence, it is alleged that the accused committed the offences.
5. It is submitted that even if the entire allegations in Annexure-D produced in these cases are accepted, no offence is made out and hence, these Crl.M.C.s are filed to quash the proceedings.
6. Heard the learned counsel for the petitioners and the Public Prosecutor.
7. When these Criminal Miscellaneous cases came up for consideration, the learned counsel appearing for the petitioners submitted that the petitioners are having valid licence to conduct money lending business. When such a submission is made, this Court directed the investigating officer to find out whether the petitioners are having any licence from the statutory authorities and whether Annexure-C licence is in the name of the petitioners. The Public Prosecutor handed over the instructions submitted by the Inspector of Police and Station House Officer, Vadakkenchery Police Station. The relevant portion of the report is extracted hereunder :
“Enquiry has been conducted at the office of the Deputy Commissioner, Tax payers Service Division, Palakkad to verify whether the petitioners have a license to do the money lending in the name of 'Dhanasree Financiers'. A report has been received from the above office that Money Lending Licence bearing No. 32090313161 has been issued to the petitioner (Sri. Selvan.V.K, age-54, S/o Krishnan, Ridhi Bhavan Kizhakkenchery PO, Palakkad, District) in the name of 'Dhanasree Financiers' during the period 04.10.2013 to 01.04.2018. The License has been cancelled on 01.04.2018. Copy of the Money l
