BASIS OF JUDGEMENT-DECREE IN 138

Querist : Anonymous (Querist) 25 January 2010 This query is : Resolved
A MONEY LENDER WITHOUT HAVING A LICENSE FILED A CASE FOR DECREE.IN SESSION COURT THE OPPOSITE PARTY COUNSEL ARGUED THAT AS THE MONEY LENDER IS NOT HAVING THE LICENSE TO DO MONEY LENDING HE CANNOT RECOVER THE MONEY AND COUNSEL ALSO GAVE THE MONEY LENDERS ACT OF THAT STATE IN WHICH IT IS CLEARLY WRITTEN AND HAS ALSO GIVEN LATEST JUDGMENTS OF VARIOUS HIGH COURTS OF THE COUNTRY IN THIS REGARD.BUT THE JUDGE DIDN'T LOOK UPON IT AND GIVE THE JUDGMENT IN THE FAVOR OF MONEY LENDER BY SAYING THAT IT IS THE CASE OF CHEQUE BOUNCING SO HE CAN RECOVER IT.IS THE APPEAL IN HIGH COURT IS ONLY THE REMEDY AVAILABLE.ON WHAT BASIS JUDGES MAKES THE DECISIONS?????????

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Srinath Kondapally (Expert) 25 January 2010
for appeal purpose High Court only has jurisdiction and every judge will see that whether there is any liability to repay the said loan/cheque transaction or not? basing on this primary principle only they will decide besides secondary things if any raised in the issues/charges

Querist : Anonymous (Querist) 25 January 2010
IT HAS ALREADY DECIDED THAT A MONEY LENDER WITHOUT LICENSE IS NOT ENTITLED TO RECOVER ANY AMOUNT TROUGH COURT AS IT IS DOING BUSINESS ILLEGALLY AND ANY TRANSACTION RELATED TO IT IS ILLEGAL AND HE CANNOT USE LEGAL SOURCE TO RECOVER THE AMOUNT GIVEN ILLEGAL.

Raj Kumar Makkad (Expert) 25 January 2010
The case is not for recovery of the money rather it is a criminal complaint under the provisions of section 138 of NI Act so no question qua the license is to be taken into consideration by district/rial judge and his decision to this aspect is justified and legal.

n.k.sarin (Expert) 25 January 2010
Agree with Makkad jee.

Arvind Singh Chauhan (Expert) 26 January 2010
If the matter is of 138 NI Act I have to suggest that, unlicensed money lender can't sue. Please go through the latest judgment, attached here.

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