Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Karnataka Money Lenders Act 1961 S. 2(10) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Karnataka Money Lenders Act, 1961; S. 2(10):Business/market practices - A commission agent advancing money to supplier of areca nut, however, charging interest - Supplier allegedly did not repay the amount - Suit for recovery - Decreed by trial Court - Reversed by High Court - On appeal, Held: Though the commission agent charging interest on loan advanced by him to supplier but his principal aim of such advancing of loan was to ensure regular supply of goods, areca nuts and not money lending - Such a practice prevalent and wide-spread in such business - Applying principle of purposive construction to the definition of money-lenders, appellant could not be said to be a money lender as he was not doing the business of money lending in a strict sense - Hence, impugned judgment set aside and judgment of trial Court restored - Interpretation of Statutes - Purposive construction.Appellant was a commission agent of areca nut and the respondent was a supplier. The respondent used to receive advance money from the appellant off and on to secure regular supply of the areca nuts. Appellant alleged that the respondent had borrowed certain amount from him but did not repay the same. Therefore, he filed a suit for recovery of the amount with interest. Before the trial Court, the respondent contended that the appellant was a moneylender and he did not have a licence as required by the Karnataka Money Lenders Act, 1961. Therefore, the suit was not maintainable. The trial Court decreed the suit. On appeal, the decree was set aside by the High Court. Hence the present appeal.Appellant contended that he was not a money lender as defined in Section 200) of the Karnataka Money Lenders Act.Respondent submitted that in view of the definitions as given u/s. 2(10) of the Karnataka Money Lenders Act, the appellant was clearly a money-lender. |
Judge | Hon'ble Mr. Justice Markandey Katju |
Neutral Citation | 2007 INSC 1110 |
Petitioner | M/s. P. Vaikunta Shenoy & Co. |
Respondent | P. Hari Sharma |
SCR | [2007] 11 S.C.R. 725 |
Judgement Date | 2007-10-31 |
Case Number | 5540 |
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