Can Lenders Recover Principal in Illegal Money Lending?

Now although our Ordinance does not expressly prohibit a money lending transaction, it imposes penalties on the money lender for not complying with the formalities set out in sections 8 and 10. ... The principal point arising on this appeal is whether the learned Judge was correct in this conclusion. Section 10 of the Money Lending Ordinance requires certain parti....

Federal Court Putrajaya

(ii) If the answer to question (i) is illegal, whether the Court should still assist the moneylender to recover the principal amount lent? ... s 2 of MA51 as it was "lending money at interest, with or without security". ... A party that suffers loss due to an illegal contract, cannot sue the other contracting party to recover losses. The law will not afford relief to ....

The failure to stamp duly a promissory note taken as security for a loan does not affect the right of the lender to recover the money due where the lender is not a person to whom the provisions of the Money Lending Ordinance apply. ... Promissory note-Insufficiently stampede-Right to recover the money lent- Lender not a profess....

The distinction is as follows :- " If a third party who has no interest in the wager or unlawful game, lends money to a player, the lender can recover the money lent ; but if the lender is himself a player, or interested in the result of the stake or game, he cannot recover." ... in 4.14.5 " for this reason the winner in gaming, or gambling, cannot lawfully recover ....

Money lender-Business of money lending-Systematic and continuous- Failure to keep books-Money Lending Ordinance, No. 2 of 1918, s. 8. ... If the plaintiff is carrying on the business of a money lender and has not kept a proper book as required by the section, then under that section he cannot recover unless he can bring himself ....

, notwithstanding the provisions of section 10 of the Money Lending Ordinance. ... Where a mortgage bond was entered into to secure a loan in respect of which promissory notes, which were " fictitious " within the meaning of section 14 of the Money Lending Ordinance, were given,- Held, that an action may be maintained on the bond to recover the loan ... The Court held that though the bond was not ....

- In this case the plaintiff, who is an Afghan money lender, sued the defendant to recover a sum of Rs. 200, the balance due on a promissory note dated May 5, 1919. The case raises a point under the Money Lending Ordinance, No. 2 of 1918. ... Money Lending Ordinance, No. 2 of 1918, s. 8-Entries mode in account book several months after the date of transaction-Acti....

2023 0 Supreme(Cal) 1052

It is the word ‘business’, and not the expression ‘money-lending’, that is determinative. Simply put, every instance of lending money is not money-lending. Not every lender is Shylock. ... expressions ‘Loan’, ‘money lender’, ‘business of money lending’, and, in particular how such a defence could be....

recovered back the money paid. ... Where it is apparent that in an accounting under section 2 of the Money Lending Ordinance (Cap. 67) the money lender will be entitled to judgment for any sum of money by virtue of a promissory note, no sum will be awarded to the lender where the promissory note is fictitious under section ... But, there is th....

It is quite clear from the plaint that plaintiff sought to recover the sum of Rs. 11,080 as balance of principal and interest on the note (A), although the plaint does not say that the sum of Rs. 100,000 was actually lent on the note. ... (2) Was the amount stated as due on the note (A) fictitious, and does the note contravene the provisions of section 13 of the -Money Lending Ordinance? (3) Has the note been fille....

2019 0 Supreme(Bom) 1397

No law can blame the lender if he will exercise his right of refund. The issue is whether the lender has exercised his right in a legitimate way or by exceeding the limits. The relationship between the applicants and the deceased is that of lender and borrower. If a lender will ask for repayment, it is his legal right to demand the money back.

2015 0 Supreme(Kar) 1343

Therefore, it was said, person lending money cannot be considered as 'money lender' and he need not possess a valid money lending licence for advancing the loan. The object is to ensure money advanced to the businessman is invested in the business and the person who lends money gets promptly his share of profit by way of interest. If that is the object of keeping the loan transaction to a trader outside the purview of Money Lenders Act, it is unthinkable that when he commits ....

2006 0 Supreme(Del) 966

On 28th July, 1999 the plaintiff lent an amount of Rs. 1,95,000/- to me in the name of defendant no. To my knowledge, the plaintiff has not obtained any license to act as a money lender which I have been told is necessary. D-1 as follows: "the plaintiff is a money lender lending lending money to various persons on interest.

1987 0 Supreme(All) 524

12. "Money Lender" is one who carries on the business of money lending. Any one falling within the definition must be designated as such. This, therefore, define the class of persons and if any one belonging to this class was carrying on the business of money lending prior to the enforcement of the Act he will come within the ambit of Section 26 (1).

1985 0 Supreme(Kar) 152

( 4 ) THE Munsiff, on scrutiny of the evidence, held that the defendant had executed the document on receiving Rs. 1,450/ -. The Civil Judge accepted the appeal and dismissed the suit on the ground that the document in question amounted to a pronote and that as it was not stamped, it was liable to be dismissed. But, however, he held that the plaintiff was a money lender and he did not possess a money lending licence and, therefore, he decreed the suit only for the principal amount.#H....