SUNDARAM FINANCE LIMITED Vs. ASSISTANT REGISTRAR

JUDGEMENT

(1.) As common questions arise for consideration in all the petitions, they are being considered by common judgment.

(2.) In all the petitions, the challenge by the petitioners is the initiation of the action of the respondent authorities under Bombay Money Lenders Act, 1946 (hereinafter referred to as "Money Lenders Act/M. L. Act"). Basis of all the petitions are that the petitioners are Non-Banking Finance Companies (N.B.F.Cs.) registered under the Companies Act and they are being regulated and governed by the provisions of Reserve Bank of India Act, 1934 (with the amendment and more particularly Chapter-3B) (hereinafter referred to as "R.B.I. Act"). They are under the control and supervision of Reserve Bank of India for the purpose of issuance of instructions and guidelines, therefore, they are not governed by the provisions of M. L. Act which is a State Act. As the concerned Registrar under M. L. Act has issued notice calling upon the petitioners to produce the accounts and documents for verification as to whether the provisions of M. L. Act are being complied with or not, failing which the fine and the other consequence may arise by initiation of the action under the M. L. Act, all the petitioners have approached to this Court by the present petitions for challenging the legality and validity of the action of issuing notice by the concerned Registrar under the M. L. Act.

(3.) It is an undisputed position that neither the petitioners are registered under M. L. Act as money lenders nor have obtained any licence under M. L. Act. It may be recorded that M. L. Act is a State Act enacted by the State legislature for the then State of Bombay and has been adopted in Gujarat State for its enforcement and is in operation in Gujarat State. Whereas R.B.I. Act is a Central Act enacted by the Parliament.