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Cri.APL No.843.18-J.odt

IN THE HIGH COURT OF JUDICATURE AT BOMBAY,

NAGPUR BENCH, NAGPUR

CRIMINAL APPLICATION (APL) NO. 843 OF 2018

Gajendra S/o. Shankarsa Chawahan,

Aged 50 Years, Occupation Business,

R/o. Balaji Nagar, Anjangaon Surji,

Tahsil Anjangaon Surji, Dist. Amaravati,

M.No. 9325542100.

…..APPLICANT

. . . VERSUS . . .

1. State of Maharashtra Through

Police Station Anjangaon Surji,

Tahsil Anjangaon Surji,

Dist. Amaravati.

2. The Assistant Registrar,

Cooperative Societies, Anjangaon Surji,

Office at Krishi Utpann Bazar Samiti

Premises, Anjangaon Surji, Tahsil

Anjangaon Surji, Dist. Amaravati.

…..NON-APPLICANTS

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Shri K. B. Zinjarde, Advocate for applicant.

Shri S. M. Ghodeswar, Additional Public Prosecutor for Non-applicant/State.

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CORAM :V. M. DESHPANDE AND

AMIT B. BORKAR, JJ.

DATE : 28.06.2021.

ORAL JUDGMENT : (PER

AMIT B. BORKAR, J.)

1.

Heard.

2.

Rule. Rule is made returnable forthwith.

3.

By this application under Section 482 of the Code of

Criminal Procedure, the applicant has challenged registration of

the First Information Report No. 136/2018 dated 06.06.2018

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Cri.APL No.843.18-J.odt

registered with the non-applicant no.1 Police Station, at the

instance of the non-applicant no.2.

4.

The First Information Report came to be registered

against the applicant with the allegation that the applicant had

advanced loans to the persons, who are residing outside area of

licence granted to the applicant. It is alleged that due to

disbursement of loan to the persons outside area of licence, many

farmers are denied benefit of loan waiver scheme of the State

Government. With the said allegations, offence under Section 41

of the Maharashtra Money-Lending (Regulation) Act, 2014 (for

short “the Act of 2014”) was registered against the applicant.

5.

The applicant, therefore, filed present application

challenging registration of the First Information Report. This

Court on 24.09.2019, issued notice to the non-applicants.

6.

The non-applicant no.2 in pursuance of notice, filed

reply and it is stated that the licence was issued to the applicant

for the purpose of carrying money-lending business in Amravati

district. Therefore, it was obligatory on the part of the applicant

to carry on business of money-lending within the area of

Anjangaon Surji Taluka. It is stated that the applicant advanced

loan to borrowers who were not resident of Amravati district.

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Cri.APL No.843.18-J.odt

7.

We have carefully considered the contents of the First

Information Report. After meaningful scrutiny of the First

Information Report, in our view, the point involved in the present

application is, whether advancing of loans to the borrowers

residing outside area of licence, can attract penal consequences as

contemplated by Section 41 of the Act of 2014.

8.

To address the question formulated by us and for better

appreciation of the contentions urged by the learned Advocate

appearing for the parties, it would be advantageous to reproduce

the provisions of Section 2(3) of the Act of 2014, which defines

expression, “business of money-lending” and the definition of

“debtor” under Section 2(7) of the Act of 2014. The definition of

“business of money-lending” in the Act of 2014, reads thus:

“Section 2 (3) - “business of money-lending means the

business of advancing loans whether in cash or kind and

whether or not in connection with, or in addition to any

other business.”

9.

The definition of “debtor” in the Act of 2014 reads thus:

“Section 2 (7) - “debtor” means a person to whom a loan is

advanced whether in cash or kind and includes his successor

in interest or surety”.

10.

Section 4 of the Act of 2014, which puts embargo on

carrying on of the business of mon