LINK HIRE-PURCHASE AND LEASING CO. (PVT.) LTD. AND PREMIER KURIES AND LOANS (PRIVATE) LTD. Vs. STATE OF KERALA

JUDGEMENT

(1.) THE petitioners are private limited companies admittedly carrying on the business of money lending. But it is their contention that they would not come within the definition of 'money lender' under the Kerala Money -lenders Act, 1958, as amended. Therefore, according to the petitioners, they are not liable to take any licence as provided under the Act nor are they bound by other provisions of the Act. They seek a declaration that the Kerala Money -lenders Act, 1958 does not apply to the petitioners as they are companies incorporated under the Companies Act. They also seek a direction to respondents Nos. 1 to 4 not to enforce the provisions of the Kerala Money -lenders Act against them.

(2.) THE term 'money -lender' is defined under Section 2(7) of the Kerala Money -lenders Act, 1958, as amended by Act 16 of 1987 as follows :

(3.) IT is contended by the petitioners that if the intention of the Legislature was to include company also within the term 'person', it would have made specific provisions under Sub -section (3) as to how and in whose name licence has to be obtained by the company, which is doing money lending business. Under Sub -section (3) such provisions are made in the case of firm, undivided joint family and any other association of individuals not required to be registered under the Indian Companies Act. The absence of a provision in the case of companies, according to the petitioners, would make it clear that the Legislature had not intended to include a company in the definition of money -lender under Section 2(7).