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SECTION 306 IPC | Accused Asked Borrowed Money Back | Loan Repay Demand

Recently based on the rising crimes there have been some instances when it has been seen that " Deceased Took Loan From a Person/Accused, Wasn't able to repay the Loan Amount and committed suicide mentioning the name of the Person/Accused" This sort of recent instances is deteriorating the Humanity Present as the person who at the first instance provided the loan has lost his money as well he got involved in legal crises which are totally risking position of a creditor


SEC 306 IPC | Loan Repay Demand By Official

Loan Repay Demand By Official is Not Abetment to Suicide

Recently Hon'ble Highcourt Maharashtra Bench at Nagpur in a similar offense quashed the FIR against a finance company employee, saying it was a part of the employer's duty and cannot be said to instigate the borrower to end life

This established the safety for banking officials but then this instance was related to a person who in an official capacity working under a bank or any registered finance business


SEC 306 IPC | Loan Repay Demand by Creditor | Person Demand to Repay Money

Loan Repay Demand By Officials is Not Abetment to Suicide but in a country like India where individuals provide loans to their friend, family members, relatives security of them as a creditor is also necessary as in many instances when an individual give's loan to his friend and friend when not able to repay money due to any problem, commits suicide mentioning the name, the individual giving the loan will not only lose money but will also get involved in legal issues which are happening in many FIR's that are being registered in today's time


“If any person commits suicide, whoever abets the commission of such suicide, shall be punishable with such imprisonment of either description of a term which may extend to 10 years, and shall also be liable to fine”.

Abetment as Defined Under Section 107 IPC Comprises of 3 essential Ingredients

1. Instigation to Commit the offence

2. Engaging in Conspiracy to Commit the Offence

3. Aiding the Commission of offence

Loan Repay Demand By Creditor

In Madiya alias Mahadev v. State of M.P. Court held that "mere demand of loan amount from the deceased does not amount the instigation or commission of the suicide by the deceased."

In Kranti Sonikar vs The State of Madhya Pradesh the Hon'ble court said

"Even if the decease was in any manner threatened or harassed, he could have lodged the report against the petitioners and without lodging a report he has taken a drastic step of committing suicide to punish his tormentors in his own way. This cannot be termed as h "abetment to commit suicide". Following the law laid down in the case in of Ram Naresh and another Vs. State of M.P. and others , this Court is also of the opinion that the report against the accused persons for alleged torture and threat to kill the deceased may constitute other offences but it may not be offence under Section 306 of the IPC. The deceased could have moved to the police or higher officials instead of taking his legal and legitimate action as the deceased adopted an escapist course of committing suicide in order to take revenge from his alleged tormentors. No case for alleged commission of the offence is made out against the petitioners."

In Param jeet Singh Chawala vs State Of Madhya Pradesh the Hon'ble High Court said

"15. Similarly in another series of decisions reported in Ramnaresh v. State of M.P. , Vishnu Prasad v. State of M.P. and

16. In view of the aforesaid case law on the point and on perusal of the totality of evidence on record the only fact appears that the applicant/accused was demanding the loan amount from the deceased and due to which the deceased has committed suicide by consuming some poisonous substance and thus the only demand of the loan amount does not itself prove the fact of instigation to the deceased for commission of the suicide, therefore, on the basis of that the applicant/accused cannot be charged for the offence punishable under Section 306 of the IPC."


lodging fake fir's against creditors in the present scenario is not a big deal and is being done but then on the other side the Indian Court has provided relief of bail's to the accused in these sorts of fake cases and in many cases have discharged the accused


Section 306 IPC


Loan Repay Demand by Creditor

Advocate Sunil Gupta

S&S Law Firm

Section 354 IPC

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