KERALA SMALL FINANCIERS ASSOCIATION Vs. STATE OF KERALA

JUDGEMENT

(1.) W. As. 737, 742, 754,7 58, 763, 767, 1042 and 1043 of 1997 were filed by the Kerala Small Financiers' Association and other private financiers, who have taken the licence under the Kerala Money Lenders Act, 1958 (for short 'the Act') for the purpose of carrying on the business of money lending. All the Writ Petitions, out of which the above appeals arise, were filed for a declaration that the amendments to S.4(2)(i) and 4(2B) of the Act by the Kerala Finance Bill 1996 and the Kerala Finance Act, 1995 respectively are unconstitutional and void. By the amendment effected to S.4(2)(i) of the Act, the licence fee was enhanced from Rs. 2,000/- to Rs. 10,000/-. The learned single Judge, by judgment dated 9.4.1997 in O.P. 16126 of 1996 and connected cases, has allowed the Original Petitions setting aside the enhancement of licence fee from Rs.2,000/- to Rs. 10,000/-. Since in the Finance Bill 1997 licence fee was proposed to be reduced to Rs. 5,000/-, the learned Judge was pleased to hold that for the year 1996 alone there cannot be a licence fee of Rs. 10,000/-. Hence, the learned Judge has ordered that licence fee for the year 1996-97 may be collected at Rs. 5000/- and if any excess amount is collected, that may be adjusted against the licence fee for future years. The above judgment of the learned Judge is challenged in the above appeals.

(2.) The Government of Kerala also filed a Writ Appeal (WA 1825 of 1997) questioning the correctness of the order of the learned Judge ordering that licence fee for 1996-97 may be collected at the rate of Rs. 5000/-. By consent of all the parties, the main Writ Appeals themselves were taken up for final hearing.

(3.) All the Writ Appeals were admitted by then Chief Justice and Sankarasubban J. considering the question of law that is raised in the appeals. The Bench, as an interim measure, directed all the licensees, who have not paid the licence fee of Rs. 5000/- as indicated in the judgment, shall pay the licence fee of Rs. 5000/- by 30.6.1997 positively