CHALAPURAM BANK LTD Vs. MAMMAD KOYA

JUDGEMENT

(1.) This is an appeal by the petitioner (decree holder) in E. P. No. 234 of 1957, an execution petition in O. S. No. 105 of 1952 of the court of the Subordinate Judge of Kozhikode. It is common ground that the appellant is a banking company as defined in S.(5)(1)(c) of the Banking Companies Act, 1949.

(2.) The lower court has invoked Act 31 of 1958, the Kerala Agriculturists Debt Relief Act, 1958, and dismissed the petition. The contention of the appellant is that that Act is invalid in so far as it relates to banking companies on the ground that it is a piece of legislation coming within the ambit of Entries 43 and 45 of the Union List (List I) in the Seventh Schedule to the Constitution and hence beyond the legislative competence of the Kerala State. The contention of the respondents (judgment - debtors), on the other hand, is that in pith and substance the Act is no more than an ameliorative measure for the relief of agricultural indebtedness and hence within the scope of Entry 30 in the State List (List II) of the Seventh Schedule.

(3.) Entry 30 deals with money-lending and money-lenders and the relief of agricultural indebtedness. Relief of agricultural indebtedness was not expressly mentioned in any of the Lists in the Government of India Act, 1985. It was, however, held by the Federal Court in AIR 1941 FC 47 - upholding the validity of the Madras Agriculturists Relief Act, 1938 - that it would fall within the provincial subject with respect to money lending and money lenders, the latter part of Entry 27 of List II of that Act. The wording of the present Entry removes by specific enumeration all possible doubts on the subject.