The Bombay High Court (Aurangabad Bench) quashed the FIR and criminal proceedings against applicants, emphasizing the civil nature of the dispute and the absence of elements constituting criminal offenses. The matter involved allegations of illegal money lending and fraudulent sale transactions under the IPC and the Maharashtra Money Lending Act, 2014.

1. Case Background and FIR Details

The FIR alleged cheating, illegal money lending, criminal trespass, and threats. The complainant claimed he was coerced into executing sale deeds to repay loans from the accused, who lacked a valid money lending license.

2. Financial Transactions and Alleged Coercion

The complainant borrowed money under distress and executed sale deeds for his land. He claimed the transactions were nominal and intended as security for loans, but the properties were resold, purportedly breaching agreements.

3. Applicant’s Defense

The accused argued:

• The transactions were genuine sales.
• No evidence suggested systematic money lending or deceptive practices.
• Bank records and receipts demonstrated legitimate financial exchanges.

4. Court’s Analysis on Money Lending Act

The Court ruled:

• A single transaction doesn’t constitute a “business” under Section 39 of the Money Lending Act.
• Continuous and systematic activity is required to attract the Act’s provisions.

5. Analysis of Cheating Allegations

The Court found no deception or dishonest inducement, a prerequisite for offenses under Sections 415 and 420 of the IPC. The complainant’s voluntary execution of sale deeds negated claims of coercion.

6. Civil vs. Criminal Nature of Dispute

The Court emphasized:

• The allegations were rooted in civil disputes over property transactions.
• Allowing prosecution would constitute an abuse of process.

7. Final Order

The FIR and related criminal proceedings were quashed, allowing parties to pursue remedies in civil court for property disputes.

Relevant Acts and Sections Discussed:

1. Indian Penal Code (IPC):

   • Section 420: Cheating and dishonestly inducing delivery of property.
   • Section 447: Criminal trespass.
   • Section 341: Wrongful restraint.
   • Sections 504, 506: Criminal intimidation and insult.

2. Maharashtra Money Lending (Regulation) Act, 2014:

   • Section 39: Prohibition of unlicensed money lending.

Ratio Decidendi:

The case underscored:

• Civil disputes must not be given a criminal color to misuse legal mechanisms.
• Solitary money lending transactions do not qualify as “business” under the Money Lending Act.
• Voluntary execution of sale deeds negates criminal intent or deception.

Subjects:

Quashing of Criminal Proceedings, Civil vs. Criminal Dispute
Civil Law, Money Lending Act, Property Disputes, Quashing FIR, Indian Penal Code, Abuse of Process of Law.