MUTHOOT FINANCE PVT. LTD. REP. BY ITS REGIONAL MANAGER, MR. C. RAJAN PILLAI Vs. STATE OF KARNATAKA REP. BY ITS SECRETARY, FINANCE DEPARTMENT AND TAXES AND SUB REGISTRAR

JUDGEMENT

(1.) THE petitioner has sought for a direction to declare that the respondents herein haw no authority to insist upon the petitioner to obtain a license under the Karnataka Money Lenders Act, 1961 to carry on its business. The petitioner has further sought for a declaration that it is beyond the competence of the Sub -Registrar to impose restrictions on the petitioner to carry on its business by invoking the provisions of the Karnataka Money Lenders Act, 1961, since the petitioner herein is a private limited company registered under the Companies Act and governed by the Reserve Bank of India guidelines. The petitioner has also further sought for a direction to the respondents not to take action against the petitioner till consideration of the application dated 31.03.2008 submitted by the petitioner for exemption of the petitioner from the purview of the Karnataka Money Lenders Act, 1961. In view of not taking any decision on its representation within a reasonable time and due to the inaction on the part of the respondents the petitioner felt necessary to present the present writ petition seeking appropriate relief as stated above.

(2.) HEARD learned Counsel for the petitioner and the learned Additional Government Advocate for the respondents. After perusal of the grounds urged in the writ petition and the stand taken by the respondents, what emerges is that the petitioner has submitted its detailed representation vide Annexure -A seeking exemption from obtaining a license under the Karnataka Money Lenders Act, 1961, producing the Memorandum of Association and Articles of Association and also necessary documents and some of the similarly placed cases, wherein the Government has considered and granted exemptions. Thereafter, the petitioner has sent another application vide Annexure -A dated 31.03.2008. The same has been duly acknowledged by the office of the respondents and its request has not been considered within a reasonable time and the petitioner was constrained to send two other reminders vide Annexures -F and F1. The grievance of the petitioner not being redressed, it is constrained to approach this Court in the present writ petition.

(3.) LEARNED Additional Government Advocate is given four weeks time to file his memo of appearance.