UNLICENSED MONEY LENDER CAN'T SUE IF CHEQUE BOUNCES

In an important judgment, the Bombay high court held that a moneylender, who does not possess a license, cannot approach the criminal court if a repayment cheque given by debtor bounces. The court has held that carrying on money-lending business without license debars a person from recovering the amount through court. The High Court further noted that as per section 10 of Bombay Money Lenders Act, 1946 no court shall pass a decree in favour of a money lender unless the court is satisfied that the moneylender held a valid license at relevant time.