Prabhjot Singh v. State of GNCT of Delhi

1. This hearing has been done through hybrid mode.

2. The present writ petition has been filed by the Petitioner – Prabhjot Singh seeking issuance of writ/ order directing the Respondentto extend the moneylending license already granted to him by the Punjab Government under the Registration of MoneyLenders Act, 1938 (hereinafter, ‘MoneyLending Act’)to New Delhi.

3. The case of the Petitioner is that he is a holder of money lending license issued by the Government of Punjab. He intendedto extend his businessto New Delhi, accordingly, he filed an application for extension of area of license to New Delhi on 10th December, 2020. However, the same was misplaced by the authorities and thus he filed a fresh application on 9th September, 2021. On16th November, 2021 the SDM, Rajouri Garden replied to the same and raised certain queries regarding the license issued to him in Punjab. The said queries were replied by the Deputy Commissioner Office, Amritsar(hereinafter, ‘Punjab Authority’).

4. The Punjab Authority vide its communication dated 19th July 2022 duly certified that there was no irregularity or fraudulent act found against the Petitioner and that the address and other details provided by him were correct. The Punjab Authority also certified that the Petitioner bears good moral character. The said letter reads: OFFICE OF THE DEPUTY COMMISSIONER, AMRITSAR MA-1 BRANCH To Office of the Sub Divisional Magistrate Rajouri Garden, Plot no.3 Shivaji Place, Raja Garden, Delhi – 27 Dated: 19/07/2022 No. MA/MS-2/4759 Subject Regarding application for extension of area of license under the Punjab Registration of Money Lenders Act, 1838 Ref. Letter Your office letter no.SDM(RG)/Money Lenders/2021/4511 Dated 23.03.2022 This is to Inform you that a report has been received in this office from the Senior Superintendent of Police Amritsar (Rural) vide letter no. A50/v-3/C.P.R.C Dated 11.06.2022. According to the report, Nothing financial irregularities or fraudulent activities are found against M/s-J.B. Finance. Also; No Complaint /FIR etc, has been lodged against the firm M/S J.B. Finance for any financial irregularities/fraud/cheating. The name and address of Sh. Prabhjot Singh S/o Sh. Manmohan Singh R/o A-200 Dream City Amritsar is correct and he bears good moral Character. This is for your information and necessary action. Sd/ For Deputy Commissioner Amritsar”

5. Despite the receipt of the said certification from the Punjab Authority the SDM, Rajouri Garden has not taken any decision in the Petitioner’s application seeking extension of area of license.

6. The grievance of the Petitioner is that the Respondent ought to take a decision and the same has been delayed without any valid reasons.

7. Ld. counsel for the Petitioner points out that the MoneyLending Act,along with the Punjab Registration of Money Lenders’ Rules, 1939(hereinafter, ‘money lending rules’)provides that whenever extension of area license is sought, it shall be open to the Collector after making such inquiries as he considers necessary from the Collector of any other district, to extend the validity of a licence so as to include the area of that district.

8. The Court has perused the Act and the Rules and the same are set out below for ready reference: “Rule 11, Punjab Registration of Money lenders Rules, 1939

11. After making such Inquiries as he thinks necessary,the Collector shall, If he finds that there is nothing to debar the grant or renewal of the licence, direct theapplicant to deposit within a period of one month. IntheGovernment treasury a sum representing the feeprescribed In Rule 12. Section 5, Registration of MoneyLenders Act, 1938

5. Licensing of money-lenders. - Every money-lender may apply to the Collector for a licence winch shall he grunted for such period, in such form, and on such conditions, and on payment of such fees, as may be prescribed. Explanation. - When an application for the renewal of a licence has been received from a licensed money-lender before the expiry of his licence, the existing licence, shall he deemed to continue in force until orders on the application have been issued.”

9. It is not in dispute that the Petitioner’s application has been filed on 9th September, 2021 and the clarification from the Punjab Authority has been received. Thus, there would be no justification for further delay in processing the application. It is accordingly directed that the SDM, Rajouri Garden shall process the Petitioner’s application for extension of area of license in accordance with Money lending Act and Money lending Rules and shall take a decision within a period of three months.

10. If any further clarification or document is required, the Petitioner shall be called for a hearing by the SDM, Rajouri Garden and a reasoned order shall be passed.

11. With these observations, the present petition, and all pending applications are disposed of.

PRATHIBA M. SINGH JUDGE DECEMBER 5, 2022 Dj/kt