Case Note & Summary
The applicants, accused in Crime No. 279/2018 registered at Police Station Dindrud, District Beed for an offence punishable under Section 39 of the Maharashtra Money Lending (Regulation) Act, 2014, filed an application under Section 482 of the Code of Criminal Procedure, 1973 seeking quashment of the FIR. The background facts reveal that one Dattatraya Ramkisan More and his wife Vithabai More lodged a complaint with the District Registrar of Co-operative Societies, Beed, alleging that the applicants were indulging in illegal money lending and threatening them. An enquiry officer, Shri S.D. Neharkar, was appointed and submitted a report dated 24.05.2017 holding that there was no money lending. The complainants challenged this order before the District Magistrate, who directed a fresh enquiry by a three-member committee. The committee conducted a fresh enquiry and submitted a report confirming money lending transactions and that the applicants had committed an offence under Section 39 of the Act. Pursuant to this report and directions from superiors, the informant, Shivaji Bapurao Ghule, Assistant Registrar of Co-operative Societies, Dharur, lodged the FIR. The applicants contended that the FIR was lodged without obtaining prior sanction under Section 42 of the Act, which mandates that no court shall take cognizance of an offence under the Act except on a report in writing of the facts constituting the offence made by a person authorized by the State Government. The Court examined the provisions of Sections 39 and 42 of the Act. It noted that Section 42 is a bar to taking cognizance without a written report by an authorized person. The Court observed that the FIR was lodged by the Assistant Registrar, who was not shown to be authorized by the State Government for this purpose. The Court also noted that the enquiry report under Section 5 of the Act is not binding on the police and does not automatically lead to registration of FIR; the police must independently apply their mind. However, in this case, the FIR was lodged mechanically based on the report without proper sanction. The Court held that the requirement of a written report by an authorized person under Section 42 is a condition precedent for taking cognizance, and since the FIR itself was lodged without such authorization, the entire proceeding is vitiated. Consequently, the Court allowed the application and quashed the FIR and all proceedings arising therefrom.
Headnote
A) Criminal Procedure - Quashing of FIR - Section 482 CrPC - Sanction for Prosecution - The applicants sought quashing of FIR registered under Section 39 of the Maharashtra Money Lending (Regulation) Act, 2014 on the ground that no prior sanction under Section 42 of the Act was obtained. The Court held that Section 42 mandates that no court shall take cognizance of an offence under the Act except on a report in writing of the facts constituting the offence made by a person authorized by the State Government. Since the FIR was lodged by the Assistant Registrar without such authorization, the FIR is liable to be quashed. (Paras 5-7) B) Money Lending - Enquiry Report - Section 5 of the Act - The Court observed that the enquiry report under Section 5 of the Act is not binding on the police and does not automatically lead to registration of FIR. The police must independently apply their mind. However, in this case, the FIR was lodged mechanically based on the report without proper sanction. (Para 6) C) Criminal Procedure - Cognizance of Offence - Section 42 of Maharashtra Money Lending (Regulation) Act, 2014 - The Court clarified that the requirement of a written report by an authorized person under Section 42 is a condition precedent for taking cognizance. Since the FIR itself was lodged without such authorization, the entire proceeding is vitiated. (Para 7)
Issue of Consideration
Whether the FIR under Section 39 of the Maharashtra Money Lending (Regulation) Act, 2014 can be quashed for want of prior sanction under Section 42 of the Act?
Final Decision
The application is allowed. The FIR in Crime No. 279/2018 registered with Police Station Dindrud, District Beed for the offence punishable under Section 39 of the Maharashtra Money Lending (Regulation) Act, 2014 and all proceedings arising therefrom are quashed.
Law Points
- Sanction under Section 42 of Maharashtra Money Lending (Regulation) Act
- 2014 is a condition precedent for prosecution under Section 39
- Enquiry report under Section 5 is not binding on police
- FIR can be quashed under Section 482 CrPC for lack of sanction
