Law: West Pakistan Money Lenders Ordinance (XXIV of 1960)

Section: 3(S)

Law: Punjab Registration of Money lenders Act, (III of 1938)

Section: 1

(a) West Pakistan Money-Lenders Ordinance (XXIV of 1960), S. 3(S) and Punjab Registration of Money-Lenders Act (lll of 1938, S.1 S, Explanation-Renewal of licence-Expression "the existing licence shall be deemed effective until orders on the application have been male"-Application for renewal of licence made within prescribed period before expiry of licence-Existing licence deemed to be effective "until orders on the application have been made"-Existing licence holds good so long as Collector does not dispose of application irrespective of period elapsing between making of application and date of order passed on applica tion. A money-lender was granted a licence under the Punjab Registration of Money-Lenders Act, 1938. His licence was due to expire on 28.1-55 but before that he made an application on 27-12-54 before the Collector for its renewal for a further period of one year. This application remained undisposed of for a long time and meanwhile the money-lender filed a suit against a debtor on 17-7-60. The objection raised on behalf of the debtor was that the money-lender had asked for the renewal of licence for a year only and therefore his licence could at most be deemed to be effective for one year only and could not enure beyond that period. Held : On a plain reading of subsection (5) of section 3 of the West Pakistan Money-Lenders Ordinance, 1960 or the Explanation to section 5 of the Punjab Registration of Money : Lenders Act, 1938, it is clear that pending the disposal of an application for the renewal of a licence, the existing licence shall be deemed to be effective until orders on the application have been made. These words are wide enough and they do not in any way limit the effect of the deeming clause. Under this subsection the existing licence shall hold good so long as the Collector does not pass his order on the application of the money-lender for the renewal of his licence. Therefore, the logical conclusion that follows is that the old existing licence held by the money-lender was to enure until the Collector has disposed of the application pending before him for the renewal of his licence irrespective of the period for…