AIR 1977 GUJARAT 189

Gujarat High Court

Hon'ble Judge(s): J. B. Mehta, S. H. Sheth , JJ

(A) Bombay Money Lenders Act (31 of 1947) , S.10(2), S.8— Construction - Expression "produce within a period" - Meaning - Expression does not mean that 'on payment of arrears of Licence fee and inspection fees' Registrar is bound to grant licence - Such payment does not amount to compliance with S.10(2) - Suit liable to be dismissed. On a true construction of sub-s.(2) of S.10, it is clear that it is open to a money-lender to apply for a license for the past period commencing from the date on which he started the business of money-lending or the expiry of six months from the date on which the Act came into force on payment of all the arrears of the licence fees. It confers a right upon a money-lender who has carried on his money-lending business without holding a valid licence to apply for a licence for the past period in order to validate the transactions of money lending which he had entered into with his debtors. Sub-sec.(2) does not cast any obligation upon the Registrar to grant a licence for the past period straightway as soon as the arrears of the licence-fees have been paid up. This is so because the Scheme of S.8 makes it abundantly clear that a licence is not granted automatically or mechanically on payment of licence fees or arrears of licence fees.(Para 10 11) ....