negotiable instrument act
Advocate M J
(Querist) 18 November 2010
This query is : Resolved
Good Evening Respected members.
In a cheque bouncing case, The amount was given by the complainant to the accused at interest rate of 18%P.A.
Now my query is, the complainant was working with the accused at same private place, but now the complainant is working in government institution whn he filed a case.
Can the compliantant lend money on interest without being registrated with the government as the pawn broker r being registered for lending money on interest. How can any normal person lend money on interest without being recognized.
under which section is this lending money at interest by common person is prohibited.
thanking you
Kiran Kumar
(Expert) 18 November 2010
very clever my dear friend, if your opinion is to be accepted then no one will lend even a single paisa to anyone.
every individual will have to seek recognition from RBI first prior to lending money.
the point you are raising is valid in Punjab province of Pakistan....you may search it through google....they have got such an enactment.
read S.138 NI Act, carefully...each and every word there is important and has been given strict construction by the Hon'ble SC.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 19 November 2010
But only defference is money lending on interest is not allowed whether individual or not.
If hand loan is given and it is proved the complainant can suceed.
If the complainant claims interest also it is fatal.
Sri Vijayan.A
(Expert) 19 November 2010
For hand loan, there is no need for any license.
Arun Kumar Bhagat
(Expert) 27 November 2010
In order to attract 138 N.I.Act there must be legally enforceable liability. Without having money lending licence, if someone carry on business then it is illegal. 138 will not lie. See justice S.B.Sinha's judegement Krishna Janardhan Bhatt.Land mark judgement.
