RAJAT JAIN Vs. NEETA GUPTA

JUDGEMENT

(1.) These Regular Second Appeals under section 100 of the Code of Civil Procedure, 1908 (CPC) arise from identical judgments passed by the courts below and therefore are being disposed of in terms of this common judgment.

(2.) The only issue to be decided in these appeals is as to whether the suit for recovery of money filed by the respondent/plaintiff is barred because of Sec. 3 of the Punjab Registration of Money Lender's Act, 1938 (hereinafter referred to as 'the Act'). As per the said Sec. 3 of the Act if the respondent/plaintiff has given a loan as his business of giving the loans then recovery of the loan given is prohibited by the Act unless the person who does money lending business is registered under the Act. The first appellate court as per paras 7 to 11 of its impugned judgment has thoroughly, exhaustively and lucidly decided the issue against the appellant/defendant and held that the suit for recovery of money filed by the respondent/plaintiff on account of giving loan to the appellant/defendant is not barred, and these paras 7 to 11 read as under:-

(3.) A reading of the aforesaid paras shows that the suit for recovery of money is barred only if the plaintiff is found to be engaged in the business of money lending. The word 'business' is very clear because the expression 'business' means various continuous transactions for doing a business and not a few transactions of loans given casually. The first appellate court has also rightly relied upon the judgment of the Punjab and Haryana High Court in the case of Amar Singh Vs. Kuldeep Singh AIR 1952 Punj. 207 that a person does not become a money lender merely because of giving casual loans to relations, friends or acquaintances and that merely because interest is charged a person does not become a money lender. In fact money can even be lent to a stranger and yet there will be no business of money lending. In my opinion, the first appellate court has committed no illegality or perversity in holding that giving of casual loans is definitely not money lending business which is envisaged under the Act.