Case Note & Summary
The High Court of Bombay, Nagpur Bench, heard a batch of 21 writ petitions collectively, all challenging orders passed by the Taluka Assistant Registrar of Moneylenders cum Assistant Registrar of Co-operative Societies under Sections 13B(1) or 13A of the Bombay Moneylenders Act, 1946. The Authority had held that transfers or sales of agricultural fields were by way of security for money lending transactions conducted without a license. Consequently, the sale deeds were declared invalid, and persons in possession were directed to hand over the property to the complainant/debtor or the Authority. The petitioners, who were the purchasers, challenged these orders on the ground of absence of jurisdiction in the Authority. By consent of all parties, only the legal question of jurisdiction was heard at the admission stage. The Court directed a general notice and proceeded to hear the matter finally. The specific question framed was whether Section 13B permits the Authority to deal with immovable properties, ignore or nullify registered sale deeds, and order delivery of possession back to the executors or to itself. For convenience, the Court relied on the facts of Writ Petition No. 599 of 2006, where a government servant (Patwari) had purchased agricultural lands from multiple debtors who alleged they still possessed and cultivated the lands despite the sale deed, and had repaid the loan but the purchaser refused reconveyance. Brief details of other petitions were also tabulated. The Court reserved judgment on 18 September 2006 and pronounced it on 13 October 2006, but the available excerpt does not include the final decision or reasoning.
Issue of Consideration
Whether the Assistant Registrar under the Bombay Moneylenders Act, 1946 has jurisdiction under Section 13B to invalidate registered sale deeds and order reconveyance or delivery of possession to the debtor.
Law Points
- Section 13A of Bombay Moneylenders Act
- 1946
- Section 13B of Bombay Moneylenders Act
- jurisdiction of Assistant Registrar
- validity of registered sale deeds
- money lending without license
- transfer of agricultural land as security
