KRISHNAPPA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioner in this writ petition is seeking a writ of mandamus directing the respondents to initiate necessary action against respondent Nos.6 and 7 particularly, under the provisions of Karnataka Prohibition of Charging Exorbitant Interest, Act 2002 and a writ of mandamus directing respondent No.3 to cancel the licence/permission accorded in favour of respondent No.6 for violation of law and directions, circular.

(2.) Heard the learned counsel for the petitioner and the learned counsel for the respondents.

(3.) Learned counsel for respondent Nos.6 and 7 would contend that the matter is squarely covered by the dictum of the Apex Court in the case of Nedumpilli Finance Company Limited Vs. State of Kerala and Others in Civil Appeal No.5233/2012 [Nedumpilli Finance]. The Co-Ordinate Bench of this Court in W.P. No.18597/2012 and connected matters placing the reliance on the question of law raised by the Apex Court in Nedumpilli Finance stated supra, has held that Non- Banking Financial Companies registered under the Reserve Bank of India, Act 1934, cannot be regulated by the State Government in terms of Chapter III-B of the Reserve Bank of India Act. Following the dictum of the Apex Court in Nedumpilli Finance (stated supra), the writ petition has been allowed and at paragraph No.6 held as under: