Authority: Supreme Court of India

Order Date: 18-08-2026

Case Overview

  • Parties: Petitioner – M/S MANSI FINANCE (CHENNAI) LTD; Respondents – LALITHA & ORS.; Applicant seeking intervention – Ashok Commercial Enterprises; Additional applicant – Vyomesh Mahipatray Shah (facing prosecution under Section 138 of the Negotiable Instruments Act, 1881).
  • Background: The matter arises from the impugned final judgment and order dated 26-05-2026 in Criminal Appeal No. 2849/2026 (Mansi Finance vs. Lalitha & Ors.) concerning a promissory note.
  • Legal Question: Whether a promissory note issued in the State of Maharashtra is to be treated as a negotiable instrument under Section 2(13)(j) of the Maharashtra Money Lending (Regulation) Act, 2014, for the purpose of Section 138 of the Negotiable Instruments Act.
  • Applications Filed:
  • IA No. 212214/2026 – Appeal against Registrar’s order rejecting Ashok Commercial Enterprises’ impleadment.
  • IA No. 178068/2026 – Permission to intervene.
  • IA No. 178067/2026 – Permission to file a miscellaneous application.
  • IA No. 183707/2026 – Request for clarification/direction on the promissory note issue.

Court Orders

1. Application IA No. 178068/2026 (permission to intervene) is allowed; Ashok Commercial Enterprises may intervene in the miscellaneous application.

2. The appeal (IA No. 212214/2026) against the Registrar’s order rejecting Ashok Commercial Enterprises’ impleadment is allowed.

3. Permission under IA No. 178067/2026 to file the miscellaneous application is granted.

4. Senior counsel Dr. A.M. Singhvi, appearing for Vyomesh Mahipatray Shah, highlighted the need for clarification that a promissory note in Maharashtra is not a negotiable instrument under the Maharashtra Money Lending (Regulation) Act, 2014.

5. Notice to the respondents on IA No. 183707/2026 (clarification/direction) is to be issued.

6. Respondent counsel Mr. Shyam Divan, assisted by Mr. Lzafeer Ahmad, accepted notice and undertook to file a counter‑affidavit within two weeks.

7. Any rejoinder, if filed, must be submitted within two weeks after the counter‑affidavit.

8. The matter is postponed to 07‑10‑2026 at 03:00 p.m. for further hearing.

Final Outcome

  • Ashok Commercial Enterprises is permitted to intervene.
  • The miscellaneous application seeking clarification on the legal status of promissory notes under the Maharashtra Money Lending (Regulation) Act is allowed to proceed.
  • Procedural directions issued for filing of counter‑affidavit, rejoinder, and next hearing date.

Topics: Legal Clarification, Negotiable Instruments, Money Lending Regulation