STATE OF KERALA Vs. MOMARCH INVESTMENTS

JUDGEMENT

(1.) The common question raised in these appeals relates to the validity of S.16A of the Kerala Money-Lenders Act, 1958. The High Court by the judgment and appeal has struck down the section as ultra vires and unconstitutional, violating Arts. 14 and 19(1)(g) of the Constitution.

(2.) Section 16A refers to the deposit made under S. 4(2A) and both the sections are extracted hereunder. Section 4(2A) provides:

(3.) Section 4(2A) imposes obligation on the money-lender to deposit amount by way of security as specified in the section. The security is intended for the due observance of the conditions of the licence. This security is liable to be forfeited on any of the grounds set out under S.16A. The grounds are:(i) if the licensee carries on the business of moneylending in contravention of any of the provisions of this Act or the rules made thereunder or the conditions of the licence; (ii) if the. licensee is convicted of an offence under S.9 or S.11 or S.13; (iii) if the licensee maintains false accounts.