KARNATAKA PAWN BROKERS ASSOCIATION Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) In these two Cases the first petitioner is the Karnataka Pawn Brokers Association and the second petitioner is a firm engaged in pawnbroker's business. They are calling in question the validity of a clarification issued by the Commissioner of Commercial Taxes. The clarification is to the following effect:

(2.) It is contended on behalf of the petitioners that the State of Karnataka has enacted the Karnataka Pawn Brokers Act 1961 (hereinafter referred to as the Act) which provides for the regulations and control of the business of pawn brokers in the State of Karnataka; that in regard to unredeemed pledged articles the pawn broker has an option either to sue for the recovery of money in respect of which the goods were pledged or to sell the same as provided in Section 176 of the Contract Act. However, Section 12 of the Act controls the sale of pledged articles. The relevant provision thereof reads as follows:

(3.) The learned Counsel appearing for the petitioners referred me to various provisions of the Act, the Contract Act and the Karnataka Sales Tax Act to impress upon me the force of his submissions made on behalf of them. However, in my view, no detailed reference of the same is required.