JUDGMENT - BATTA R.K., J.:---The issue involved in these petitions, is same and as such it is proposed to dispose of both the writ petitions by a common judgment.

2. In both the writ petitions, there is a challenge to the validity of provisions of section 9-A of the Bombay Money Lenders Act, 1946 (hereinafter called as "the said Act") as amended by Maharashtra Act No. 7 of 1992 which, according to the petitioners, is ultra vires with the provisions of the Constitution in so far as it seeks to levy inspection fee on the money lenders. Petitioners, therefore, seek striking down of section 9-A of the said Act. Consequently, the petitioners also sought quashing of the Deman Notice for payment of inspection fee.

3. We may refer to some facts in Writ Petition No. 3469/93 which are more comprehensive. Petitioners therein are carrying money lending business and hold money lending licence issued under the provisions of the said Act. This petition gives history of incorporation of section 9-A and states that, for the first time, section 9-A in respect of levy of inspection fee was introduced by Bombay Act No. 50 of 1959 which came into force on 26-9-1959. The first amendment to section 9-A was made by Maharashtra Act No. 76 of 1975 which came into force from 26-7-1976. Ultimately, section 9-A was amended by Maharashtra Act No. 7 of 1992 which came into force from 28-4-1992. The amended provisions of section 9-A with which we are concerned in this petition are as under :

"9-A Levy of inspection fee :

(i) An inspection fee shall, in addition to the licence fee leviable under section 6, be levied from a money lender applying for a renewal of a licence at the rate of one per cent of the maximum capital utilised by him during the period of the licence sought to be renewed or rupees five thousand, whichever is lesser.

(2) In default of payment of an inspection fee leviable under sub-section (1), it shall be recoverable from the defaulter in the same manner as an arrears of land revenue.

Explanation : For the purposes of this section, "maximum capital" means the highest total amount of the capital sum which may remain invested in the money lending business on any day during the period of a licence."

Rule 11 of the Bombay Money Lenders Rules, 1959 (hereinafter called as "the said Rules") deals with the levy of inspection fees and it reads as under:

"11. Levy of inspection fee :-

(1) On receipt of an application for the renewal of a licence, the Assistant Registrar to whom the application has been made, shall call upon the applicant to produce his accounts for inspection. He shall then assess the inspection fee payable under section 9-A in respect of inspection of books of accounts and call upon the applicant to pay the inspection fee in the manner prescribed in Rule 10. The inspection fee shall be paid within ten days of the receipt of the order in this behalf by the applicant or within such further period not exceeding thirty days in the aggregate of the receipt of the order as the Registrar may grant in that behalf.

(2) The Registrar may suo motu or on an application made in that behalf revise the order of assessment made under sub-rule (1) if he thinks fit."

According to the petitioners, inspection fee is payable when the licence is to be renewed and the charge of inspection fee @ 1% of the maximum capital utilised by the money lender during the period of licence sought to be renewed or Rs. 5,000/- whichever is less. The term maximum capital has been explained in the explanation to section 9-A to mean highest amount of capital sum which may remain invested in the money lending business on any day during the period of a licence. Therefore, according to the petitioners, amount of inspection fee differs from money lender to money lender and depends upon the utilisation of maximum capital on any day during the period of a licence. It is further pointed out that the money lenders are required to maintain Books of Account under section 18 of the Act read wit

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