Karnataka High Court
Sri Revannaiah vs State Of Karnataka on 14 September, 2022
Author: Suraj Govindaraj
Bench: Suraj Govindaraj
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CRL.P No. 4363 of 2013
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 14TH DAY OF SEPTEMBER, 2022
BEFORE
THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ
CRIMINAL PETITION NO. 4363 OF 2013
BETWEEN:
1. SRI. REVANNAIAH,
MANAGER,
MANAPPURAM JEWELLERS,
4TH BLOCK, JAYANAGAR BRANCH,
JAYANAGAR,
BANGALORE - 560 041.
2. V.P. NANDAKUMAR,
CHAIRMAN,
MANAPPURAM FINANCE LTD.,
MANAPPURAM HOUSE,
VALAPAD, TRISSUR,
KERALA - 680 567.
...PETITIONERS
(BY SRI.RAVI SHANKAR B., ADVOCATE)
Digitally signed by
POORNIMA
SHIVANNA
Location: HIGH
AND:
COURT OF
KARNATAKA
1. STATE OF KARNATAKA,
BY INSPECTOR OF POLICE,
DODDAPETE SHIMOGA POLICE STATION,
SHIMOGA - 577 201.
2. SRI. A.S. JAYAPPA,
ASSISTANT REGISTRAR OF
COOPERATIVE SOCIETIES,
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CRL.P No. 4363 of 2013
SHIMOGA SUB-DIVISION,
SHIMOGA - 577 201.
...RESPONDENTS
(BY SRI.MAHESH SHETTY, HCGP FOR R1;
R2 SERVED)
THIS CRL.P. IS FILED U/S. 482 OF CR.P.C PRAYING TO
(a) QUASH THE ORDERS DATED:24.01.2013 PASSED BY THE
JMFC (II COURT), AT SHIMOGA, IN C.C.NO.227/13 TAKING
COGNIZANCE FOR THE OFFENCE P/U/S 28, 38, 39, 41 OF
KARNATAKA MONEY LENDERS ACT, 1961 AND SEC. 4 OF
KARNATAKA PROHIBITION OF CHARGING EXORBITANT
INTEREST ACT, 2004, AND ISSUING PROCESS TO
PETITIONERS HEREIN, ANNEXED TO THE PETITION AS
ANNEXURE-H. (b) CONSEQUENTLY QUASH THE ENTIRE
PROCEEDINGS IN C.C.NO.227/13 PENDING ON THE FILE OF
THE JMFC (II COURT), SHIMOGA, AND DISCHARGE THE
PETITIONERS NO.1 AND 2.
THIS PETITION, COMING ON FOR HEARING, THIS DAY,
THE COURT MADE THE FOLLOWING:
ORDER
1. The petitioners are before this Court seeking for the following reliefs:
Wherefore, the petitioners respectfully pray that this Hon'ble court may be pleased to:
a. Call for entire record in C.C.No.227/2013 pending on the file of Judicial Magistrate, First Class-(II Court), at Shimoga.
b. Quash the orders dated 24.01.2013 passed by the Judicial Magistrate, First Class (II Court), at Shimoga, in C.C.No.227/13 taking cognizance for -3- CRL.P No. 4363 of 2013 the offence punishable under Sections 28, 38, 39, 41 of Karnataka Money Lenders Act, 1961 and Section 4 of Karnataka Prohibition of Charging Exorbitant Interest Act, 2004, and issuing process to petitioners herein, annexed to the petition as ANNEXURE-H. c. Consequently quash the entire proceedings in C.C.No.227/13 pending on the file of the Judicial Magistrate, First Class (II Court), Shimoga, and discharge the Petitioners Nos.1 and 2.
d. Grant such other relief's as this Hon'ble Court deems fit in the circumstances of the case to meet the ends of Justice and Equity.
2. The proceedings against the petitioners was initiated for violating the provisions of Karnataka Money- Lenders Act, 1961. In a batch of matters, this Court vide order dated 16.06.2022 in W.P.No.18597/2012 (GM-ML/PB) and other connected matters, has declared that the Karnataka Money-Lenders Act, 1961 and Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 are not applicable to the petitioners since the petitioners is a Non-Banking Financial Company (NBFC), relevant paragraph 6 is reproduced hereunder for easy reference: -4- CRL.P No. 4363 of 2013
"6. Following the dictum of the Hon'ble Apex Court in NEDUMPILLI FINANCE COMPANY LIMITED (supra), writ petitions are allowed and it is declared that State Enactments i.e., Karnataka Money-Lenders Act, 1961 and the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004, are not applicable to the petitioners/NBFCs registered under the 1934 Act and regulated by Reserve Bank of India". Accordingly,
(i) In W.P.No.18597/2012 - Annexure-G bearing No.DRBC/ML/DOORU/44/2011-12 dated 08.05.2012 and Annexure-H letter bearing No.NML/YMC/258/2011-12 dated 11.05.2012;
(ii) In W.P.No.47108/2011 - Annexure-F bearing No.DRB-C/ML/DOORU/20/2011-12 dated 29.09.2011 and the entire proceedings in Crime No.0272/2011 including the FIR Annexure-G dated 28.11.2011;
(iii) In W.P.No.3208/2012 - Order Annexure-G bearing No.AR-32/LEVADEVI/CR.94/2011-12 dated 21.01.2012 and Annexure-H letter bearing No.NML/YMC/ /2011-12 dated 21.01.2012;
(iv) In W.P.No.7508/2012 - Order Annexure-L bearing No.NML/YMC/128/2011-12 dated 29.10.2011 and Annexure-H letter bearing No.NML/YMC/109/2011-
12 dated 29.09.2011;
(v) In W.P.No.11891/2012 - Order Annexure-A bearing No.C0 10 CML 2010 dated 05.01.2012 and letter Annexure-B bearing No.DRT:LEVADEV/ SKSMICRO:
CR178/201-12 dated 30.03.2012;
(vi) In W.P.No.15215/2012 - Order Annexure-J bearing No.ARB-45(C)/ML/PB/ITARE/ 682/ 2011-12 dated 17.04.2012;
(vii) IN W.P.No.11658/2015 - Order Annexure-F bearing No.DRB-S/NML/P.N./04/2014-15 dated 17.11.2014, are quashed.
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3. In view of the said finding of this Court that the aforesaid enactment would not be applicable to the petitioner, the question of any offence being committed by the petitioner under the said enactment would not arise. As such, I pass the following:
ORDER i. The petition is allowed.
ii. The proceedings in CC No.227/2013 pending on the file of Judicial Magistrate, First Class (II Court), Shimoga and all orders passed therein are hereby quashed.
Sd/-
JUDGE KA