Kerala HC: A single incident of money lending does not constitute offence under Money Lenders Act
The Hindu
The court while quashing the case highlighted that what was intended to be regulated, “is not a solitary instance of money lending, but a series of activity, taking the form of a business of advancing and realising loans.”
The Kerala High Court has held that lending money to a single person does not constitute the offence of unauthorised money lending under the Kerala Money Lenders Act.
The court while quashing a case registered against a person under the Act observed that a reference to the preamble as well as the objects of the Act revealed that what was intended to be regulated, “is not a solitary instance of money lending, but a series of activity, taking the form of a business of advancing and realising loans.” The Act was intended to regulate and control the business of money lenders in the State of Kerala.
The court pointed out that in the present case, no material had been adduced by the prosecution to successfully prosecute the petitioner under the Act alleging conduct of a money lending business. None of the circumstances culled out during investigation, revealed that the petitioner had indulged in a continuous activity of money lending or that petitioner had lend money to any person other than the second respondent.
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