JUDGMENT :

V. Ramasubramanian, J.

The question as to whether Non-Banking Financial Companies (for short "NBFCs") regulated by the Reserve Bank of India, in terms of the provisions of Chapter III-B of the Reserve Bank of India Act, 1934 (hereinafter referred to as "RBI Act") could also be regulated by State enactments such as Kerala Money Lenders Act, 1958 (hereinafter referred to as "Kerala Act") and Gujarat Money Lenders Act, 2011 (hereinafter referred to as "Gujarat Act"), has arisen for our consideration in these appeals, with the Kerala and Gujarat High Courts taking opposite views.

2. We have heard the learned counsel for the respective parties, the learned senior counsel appearing for the State of Kerala, the learned standing counsel appearing for the State of Gujarat and the learned counsel appearing for RBI.

FACTUAL MATRIX

3. A brief sojourn into the factual matrix may provide the setting, in the context of which, the above question of law has arisen. It goes as follows:-

KERALA

3.1 The legislature of the State of Kerala passed the Kerala Act, 1958, with the professed object o