The court established that a lack of evidence and valid licensing negates the applicability of alleged offences under the IPC and the Kerala Money Lenders Act.

O R D E R

The petitioners are accused Nos.1 to 3 in C.C.No.1415 of 2015 pending on the file of the Judicial First Class Magistrate Court, Kunnamkulam, which arises from Crime No.1276 of 2014 of Kunnamkulam Police Station. The aforesaid crime was registered for the offenences punishable under Section 420 IPC and under Sections 3 , 4, 17 and 18A of the Kerala Money Lenders Act , 1958.

2. The prosecution case is as follows: On 20.05.2014 at 12.15 pm the Sub Inspector of Police, Kunnamkulam conducted an inspection in the premises of M/s.Chorus Kuries and Loans Private Ltd., to which the petitioners are directors. During the said inspection certain blank cheque leafs and vouchers were seized by the police and Annexure-A FIR was registered against them for the aforesaid offences. After completing the investigation, Annexure-B charge sheet was filed. On the basis of the final report, cognizance was taken by the Judicial First Class Magistrate Court, Kunnamkulam. This Crl.M.C is filed by the petitioner seeking to quash all further proceedings in the aforesaid calendar case.

3. Heard Sri.Arjun, learned counsel for the petitioners and Sri.Aravind V. Mathew, learned Public Prosecutor for the State.

4. The learned counsel for the petitioners contends that even if the entire allegations contained in Annexure-B charge sheet are accepted for its face value, no offence is made out. With regard to Section 420 IPC , it is pointed out that, there is absolutely no complaint submitted by any person so as to attract the aforesaid offence. The averments contained in the final report also do not contain any allegation as to the commission of any act of cheating of any person. The only allegation against the petitioners is that, they have collected certain blank cheques, blank stamp papers and also certain gold ornaments which were not returned. However, on going through the statements of the witnesses recorded under Section 161 Cr.P.C, it can be seen that none of the witnesses have made any allegation that they were cheated by not returning cheques or gold ornaments. As regards to the cheques, those were stated to have been submitted by the said witnesses as security for the loan transactions, which they have availed. Even though it was stated that the same were not returned, conspicuously, none of them have stated that said cheques were not returned even after a demand for return of the same. In other words the statements of any of the witnesses do not indicate any demand being made by the said witnesses for return of the cheque. Similarly, there is no allegation that the aforesaid cheque leafs or stamp papers were misused by the petitioners. In such circumstances, the offences punishable under will not get attracted.

3. The other offences alleged are under Sections 3 , 4, 17 and 18A of the Kerala Money Lenders Act . Sections 3 and 4 of , deal with licence. In this case, the petitioner has already produced the licence as Annexure-F series, which would indicate that he was authorised to conduct the business of money lending. Section 17 of the contemplates for a prosecution if a person is conducting the business of money lending without obtaining a licence or in violation of the conditions of the licence. As the petitioner has already obtained a licence and the activities were being conducted on the basis of such licence, the first limb of Section 17 would not get attracted. The other limb of Section 17 relates to conduct of business in violation of the conditions of licence. However, on going through the allegations contained in Annexure-F and also statements of witnesses, it can be seen that there is absolutely no allegation of any violations are seen mentioned therein. In such circumstances, Section 17 is also not attracted. Remaining offence is under Section 18A of .

As per the aforesaid provision, certain acts of pawnbrokers are made punishable. Pawnbroker is defined under Section

2 (7A), which reads as follows:

“(7A) “pawnbroker” means a pe