Supreme Court Judgements - Citations
SHYAMSUNDER
(Querist) 17 February 2010
This query is : Resolved
Under Karnataka Money Lenders Act, Complainant obtained license to do business of money lending. The licence expired after certain period (5 years). The complainant did not renew his money lending license and closed business due to loss & inability. Does the complainant has provision to file civil suit or under 138 of NI Act, against the borrower for recovery of money lent when money lending license was valid and in force, even after the money lending license has expired?
Please quote relevant judgements of the Apex court (preferably) on this matter, any recent judgement will be highly appreciated in this matter. - SHYAMSUNDER
A V Vishal
(Expert) 17 February 2010
Yes, the lender can sue the borrower under s.138.
Khaleel Ahmed Mohammed
(Expert) 18 February 2010
138 of NI Act does not apply as per your statement.
For civil suit, the details including the date of borrowing and agreement required. If three years has been completed. A civil suit can not be filed without condoning the delay.
SHYAMSUNDER
(Querist) 19 February 2010
Thanks Vishal & Thank You Khaleel Ahmed for the response. I appreciate. I accept that the lender can sue the bprrower under S.138. I also understand that if documents executed by the borrower has completed three years civil suit can not be filed. In this case, the lender has obtained DEBT ACKNOWLEDGEMENT' from the borrower & therefore the validity of the documents executed by the borrower has extended for further three years. But, my question was what happens if the Money Lending License has expired. I repeat: after the money lending license has expired can the lender file civil suit against the borrower for recovery of money? I need citations from Supreme Court Judgements, if any in this regard.
SHYAMSUNDER
(Querist) 22 February 2010
Hi! LEGAL EXPERTS. I haven't got any help yet. Can anybody clarify my doubt. I really appreciate your views.
"Under Karnataka Money Lenders Act, Complainant obtained license to do business of money lending. The licence expired after certain period (5 years). The complainant did not renew his money lending license and closed business due to loss & inability. Does the complainant has provision to file civil suit or under 138 of NI Act, against the borrower for recovery of money lent when money lending license was valid and in force, even after the money lending license has expired?
Please quote relevant judgements of the Apex court (preferably) on this matter, any recent judgement will be highly appreciated in this matter". - SHYAMSUNDER
PS: In this case, the lender has obtained DEBT ACKNOWLEDGEMENT' from the borrower & therefore the validity of the documents executed by the borrower has extended for further three years. But, my question was what happens if the Money Lending License has expired. I repeat: after the money lending license has expired can the lender file civil suit against the borrower for recovery of money? I need citations from Supreme Court Judgements, if any in this regard.
