Section 3, 4 – Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- Cheque bounce case – Money Lending Licence -- Complainant having visiting terms with accused -- Since accused was in dire need of money, loan amount Rs.5,40,000/- with an agreement was advanced – Accused issued a Cheque of Rs. 5 lacs – Cheque dishonoured on account of insufficiency of funds -- Trial Magistrate dismissed the complaint observing that for entering into loan transaction, a licence under Money Lender's Act was necessary – Held, the approach of the trial Magistrate was misconceived and erroneous -- Dismissing the complaint for the reason of complainant having been found to be a professional money lender practicing money lending without licence is not sustainable – Appeal allowed, matter remanded back.

(P&H HC) Decided on: 17.02.2020

Section 3,4 -- Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- Maintainability of complaint u/s 138 of NI Act -- Complainant used to lend money on credit basis to different persons, but he did not possess any money lender's licence -- Punjab Registration of Money-lender's Act, 1938 is applicable to the State of Haryana -- Section 4(2) postulates that no money lender shall carry on the business of advancing loans unless he gets himself registered under sub-section (1) -- Likewise, Section 3 of the Act posits that a suit by a money-lender for the recovery of a loan or an application by a moneylender for the execution of a decree relating to a loan, shall be dismissed, unless the money-lender is registered and holds a valid license – Having a money lender's license is a condition precedent to advance the loan to the Farmers – Complainant cannot adhere to initiate the criminal prosecution against the respondent u/s 138 of the NI Act.

(P&H HC) Decided on: 13.11.2014