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Kerala High Court
Shylaja vs State Of Kerala Represented By Public ... on 25 March, 2026
Author: C.S.Dias
Bench: C.S.Dias
CRL.MC NO. 3308 OF 2022 1 2026:KER:26337
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE C.S.DIAS
WEDNESDAY, THE 25TH DAY OF MARCH 2026 / 4TH CHAITHRA, 1948
CRL.MC NO. 3308 OF 2022
CRIME NO.1392/2021 OF Palakkad Town South Police Station, Palakkad
AGAINST THE ORDER/JUDGMENT DATED IN CC NO.8 OF 2022 OF CHIEF
JUDICIAL MAGISTRATE PALAKKAD
PETITIONERS/ACCUSED NOS 1 AND 2:
1 SHYLAJA
AGED 59 YEARS
W/O SACHIDHANANDAN, PRATHIBA NAGAR, KALMANDAPAM,
PALAKKAD, PIN - 678001
2 PRASAD
AGED 39 YEARS
THULASI MANDIR, THORAPALAYAM, PALAKKAD, PIN - 678001
BY ADV SRI.V.A.VINOD
RESPONDENTS/ STATE COMPLAINANT AND DEFACTO COMPLAINANT :
1 STATE OF KERALA REPRESENTED BY PUBLIC PROSECUTOR
HIGH COURT OF KERALA, ERNAKULAM, PIN - 682031
2 STATION HOUSE OFFICER
TOWN SOUTH POLICE STATION, PALAKKAD, PIN - 678001
3 KADEEJA
AGED 30 YEARS
W/O KABEER, PANNAMKULAM, PRATHIBHA NAGAR,
KUNNATHURMEDU, PALAKKAD, PIN - 678013
SR.PP.SRI.C.S.HRITHWIK
THIS CRIMINAL MISC. CASE HAVING COME UP FOR ADMISSION ON
25.03.2026, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:
CRL.MC NO. 3308 OF 2022 2 2026:KER:26337
C.S.DIAS, J.
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Crl.M.C. No.3308 of 2022
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Dated this the 25th day of March, 2026
ORDER
The petitioners are the accused Nos.1 and 2 in
C.C.No.8/2022 on the file of the Court of the Chief Judicial
Magistrate, Palakkad, which has originated from Crime
No.1392/2021 registered by the Palakkad Town South Police
Station, alleging the commission of the offences punishable
under Section 506 of the Indian Penal Code, 1860 , Sections 3
and 17 of the Kerala Money Lenders Act, 1958 and Section 3
and 9(a)(b)(iii) of the Kerala Prohibition of Charging
Exorbitant Interest Act, 2012.
2. The petitioners have filed the criminal miscellaneous
case to quash the final report and all further proceedings in
the above case on the assertion that the allegations in the
final report do not attract the offences alleged against the
petitioners.
CRL.MC NO. 3308 OF 2022 3 2026:KER:26337
3. The crux of the prosecution allegation is that, the
petitioners had advanced money to the 3rd respondent
(defacto complainant) without the requisite statutory licenses
by charging exorbitant interest above the rates fixed by the
Government. They also threatened the 3rd respondent.
4. I have heard the learned counsel for the petitioners and
the learned Public Prosecutor.
5. The learned counsel for the petitioners submits that,
even if the allegations in the final report are taken on their
face value, the same would not attract the offences alleged
against the petitioners. There is no evidence to prove that the
petitioners were conducting money lending business and had
demanded exorbitant interest from the 3rd respondent. In fact,
the 3rd respondent had taken a personal loan from the
petitioners, but failed to return the amount. It is only to
prevent the petitioners from the recovering the money from
the 3rd respondent that he has deliberately got the present
crime got registered. Therefore, the entire proceedings may
be quashed.
CRL.MC NO. 3308 OF 2022 4 2026:KER:26337
6. The learned Public Prosecutor opposes the Crl.M.C. He
submits that there are substantial materials to prove the
petitioners' culpability in the crime. If the allegations in the
final report are taken on their face value, the same would
attract the offences alleged against the petitioners. The
prosecution proposes to examine witnesses and produce
materials which will establish that the petitioners have
committed the offences. This Court may not embark upon a
mini trial and conclude that the petitioners have not
committed the above offences. Hence, the Crl.M.C may be
dismissed.
7. The gist of the prosecution allegation is that, the
petitioners had advanced money to the 3 rd respondent on
interest without the statutory licenses and permissions. Thus,
the petitioners have committed the above offences.
8. On going through the allegations in Annexure 2 final
report and materials on record, I find that there are specific
allegations attributed against the petitioners that they had
lend money to the 3rd respondent , without the statutory
CRL.MC NO. 3308 OF 2022 5 2026:KER:26337
license, on interest. It is seen that the prosecution proposes
to examine 29 witnesses and have produced materials.
9. In the celebrated decision in State of Haryana and
others v. Bhajan Lal and others [1992 Supp (1) SCC 335],
the Hon'ble Supreme Court has laid down exhaustive
principles to quash a criminal proceeding. The salient
principle is that, if the allegations in the complaint do not
attract the offence; then the the power under Section 482 of
the Code of Criminal Procedure can be exercised.
10. After bestowing anxious consideration of the facts and
the materials on record, and the rival submission made across
the Bar, and also, the fact that, though the Crl.M.C was filed
on 26.05.2022 and this Court has not admitted the case and no
interim order has been passed. Hence, I am satisfied this is
not a fit case to exercise the inherent powers of this Court
under Section 482 of the Cr.P.C.
In the aforesaid circumstances, I dismiss the Crl.M.C, but
without prejudice to the right of the petitioners to raise all the
contentions before the Trial Court, including filing an
CRL.MC NO. 3308 OF 2022 6 2026:KER:26337
application for discharge, provided the charge has not been
framed till date. If such application is filed, the Trial Court is
directed to consider and dispose the application, in
accordance with law.
Sd/-
C.S.DIAS,JUDGE
SCB/25.03.26.
CRL.MC NO. 3308 OF 2022 7 2026:KER:26337
APPENDIX OF CRL.MC NO. 3308 OF 2022
PETITIONER ANNEXURES
Annexure1 CERTIFIED COPY OF FIRST INFORMATION REPORT IN
CRIME NO 1392/2021 OF TOWN SOUTH POLICE
STATION, PALAKKAD
Annexure2 CERTIFIED COPY OF FINAL REPORT IN C.C NO
8/2022 PENDING ON THE FILES OF HON'BLE CHIEF
JUDICIAL MAGISTRATE COURT, PALAKKAD
Annexure3 COPY OF THE WITNESS MEMORANDUM IN C.C NO
8/2022 PENDING ON THE FILES OF HON'BLE CHIEF
JUDICIAL MAGISTRATE COURT, PALAKKAD
Annexure4 COPY OF STATEMENT OF WITNESS IN C.C NO 8/2022
PENDING ON THE FILES OF HON'BLE CHIEF
JUDICIAL MAGISTRATE COURT, PALAKKAD
Annexure5 COPY OF THE CRL.M.P NO 1531/2021 PENDING ON
THE FILES OF HON'BLE CHIEF JUDICIAL
MAGISTRATE COURT, PALAKKAD
