MALIMATH, BHASKARAN NAMBIAR
MONARCH INVESTMENTS – Appellant
Versus
STATE OF KERALA – Respondent
1. The provisions of the Kerala Money Lenders Act are in challenge in this batch of writ appeals and writ petitions. A learned single judge rejected the claim and dismissed the writ petitions. Hence the appeals. The Act has been subsequently amended. Thus the new writ petitions.
2. Money Lenders including pawn brokers are the appellants or the writ petitioners. Licence under the Act to carry on the business of money lending gives the money lenders a status and symbol which they would always gladly welcome. Rightly, therefore, there is no complaint against the insistence of a licence to conduct the business. But it is contended:
(1) that the fixation of a uniform licence fee of Rs. 1000/- under S.4(2) of the Act, not geared to the business turnover of the money lender is arbitrary;
(2) that the insistence of security on a graduated scale under S.4(2A) is unreasonable and arbitrary violating Art.19(1) (g) and Art.14 of the Constitution; and
(3) that the forfeiture of security as an additional penalty under S.16A of the Act with no guidelines for the exercise of that power is arbitrary and opposed to Art.14.
3. It is, therefore, necessary to advert to the object and the scheme
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