Case Note & Summary
The applicants, Baliram Ashroba Kadape, Ashroba Maruti Kadape, and Namdeo Achyutrao Pote, filed Criminal Application No. 3884 of 2017 under Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of FIR No. 09/2017 registered at Ashti Police Station, District Jalna, for offences under Sections 23, 39, 45, and 48 of the Maharashtra Money Lending (Regulation) Act, 2014. The FIR was lodged by Sanjeev Dadasaheb Deore, Assistant Registrar of Cooperative Societies, Partur, alleging that the applicants were engaged in money lending without a valid license. The applicants contended that they were not 'money lenders' as defined under the Act and that the loans given were personal and not part of any business. They argued that the FIR was mala fide and politically motivated, as applicant no. 1 had political differences with the local guardian minister. The State opposed the quashing, submitting that the applicants had admitted to lending money and that the Act does not require the lender to be a habitual money lender. The court examined the definition of 'money lender' under Section 2(10) of the Act, which requires the person to be engaged in the business of money lending. The court noted that the FIR did not contain any allegation that the applicants were carrying on the business of money lending. The loans were given to acquaintances and relatives, and there was no evidence of systematic lending. The court held that the essential ingredients of the offence were missing, and continuing the proceedings would be an abuse of process. Accordingly, the court quashed the FIR and all consequential proceedings. The connected application for intervention was disposed of.
Headnote
A) Criminal Procedure Code, 1973 - Section 482 - Quashing of FIR - Inherent powers - FIR can be quashed if no prima facie case is made out and continuation of proceedings would be an abuse of process of law. (Paras 1-10) B) Maharashtra Money Lending (Regulation) Act, 2014 - Sections 23, 39, 45, 48 - Offence of money lending without license - Definition of 'money lender' - The Act defines 'money lender' as a person who carries on the business of money lending. Mere lending of money, even without license, does not attract penal provisions unless the lender is engaged in the business of money lending. (Paras 5-8) C) Maharashtra Money Lending (Regulation) Act, 2014 - Section 2(10) - Definition of 'money lender' - The term 'money lender' includes a person who advances loan in the course of his business. Isolated or occasional loans by individuals not in the business of money lending are excluded. (Para 6) D) Criminal Procedure Code, 1973 - Section 482 - Quashing of FIR - Abuse of process - Where the allegations in the FIR do not disclose the essential ingredients of the alleged offence, the FIR is liable to be quashed to prevent abuse of the process of court. (Paras 9-10)
Issue of Consideration
Whether the FIR registered against the applicants for offences under Sections 23, 39, 45, and 48 of the Maharashtra Money Lending (Regulation) Act, 2014 deserves to be quashed for lack of prima facie case.
Final Decision
The court allowed the application and quashed FIR No. 09/2017 registered at Ashti Police Station and all consequential proceedings. The connected application for intervention was disposed of.
Law Points
- Quashing of FIR
- Prima facie case
- Money lending
- Definition of money lender
- Maharashtra Money Lending (Regulation) Act
- 2014
- Sections 23
- 39
- 45
- 48
