2010 (1) AIR Bom R 434

Bombay High Court

Hon'ble Judge(s): P. R. Borkar , J

Negotiable Instruments Act (26 of 1881) , S.138— Bombay Money Lenders Act (31 of 1947) , S.5, S.10— Dishonour of cheque - Legally enforceable debt - Loan advanced @page-CriLJ1218by money lender doing business of money lending without licence - Is not "debt or other liability" as per explanation to S.138 - Provisions of S.138 would not apply to such transaction. Section 5 of the Bombay Money-Lenders Act, 1946 lays down that no money lender shall carry on business of money lending except in the area for which he has been granted a licence and except in accordance with the terms and conditions of such licence. It is not the case of present complainant that he has any money lending licence. Section 10 of the Act lays down that no Court shall pass a decree in favour of a money-lender in any suit to which said Act applies unless the Court is satisfied that at the time when the loan or any part thereof, to which the suit relates was advanced, the money-lender held a valid licence, and if the Court is satisfied that the money-lender did not hold a valid licence, it shall dismiss the suit. In other words, carrying on money lending business without licence debars a person from doing money lending and recovering the amount through Court. As per explanation to Section 138 of the Negotiable Instruments Act debt or other liability "means a legally enforceab....