V. THOMAS Vs. ARMSTRONG THOMAS KENNADY

JUDGEMENT

(1.) This Criminal Original Petition has been filed to direct the learned Judicial Magistrate, Valliyoor to number the petition submitted under Section 5 (i) and (6) of the Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003 by the petitioner and consequently pass orders on merits, within stipulated time.

(2.) It is the case of the petitioner that he is the absolute owner of the property in survey No.2072/1, measuring 92 cents situated at Kavalkinaru, Perungudi Village. The petitioner had purchased the above said property through registered sale deed, dated 22.02.2008 in document No.961/2008. Since the petitioner faced financial crisis, he decided to borrow money on interest and he approached the second respondent and the second respondent introduced the petitioner to the first respondent, who is a money- lender. Thereafter, on 29.06.2015, the petitioner borrowed a sum of Rs.25,00,000/- from the first respondent. On the instruction of the first respondent, the petitioner had executed a formal sale deed in respect of 52 cents of the above said mentioned property for security purpose, since it is usual practice in that area, if someone borrowed huge amount for interest, they have to execute a formal sale deed for security purpose and after repayment of loan amount, the property will be reconvened to the borrower/owner.

(3.) The petitioner after borrowing the loan, had paid a sum of Rs.7,50,000/- as interest to the first respondent and he has also issued three cheques towards the principal amount of Rs.5,00,000/- and the first respondent had encased two of the cheques and the petitioner repaid the balance amount by cash of Rs.5,00,000/-, the remaining cheques was handed over to the petitioner. Out of Rs.25,00,000/- borrowed, the petitioner has so far repaid a sum of Rs.15,00,000/- with interest.