PADMANABHAN J.

In these writ petitions, the petitioners have challenged the provisions of the Miscellaneous Non-Banking Companies (Reserve Bank) Directions, 1973 (for short "the Reserve Bank Directions, 1973"). The petitioners are partners of the Palghat Credit Corporation, a partnership firm, registered under the Indian Partnership Act. They are also shareholders and directors of the Palghat Chit Funds (P.) Ltd., a company registered under the Companies Act, 1956 (referred to as "the company"). The partnership firm receives deposits from the members of the public and lends money to the members of the public. During financial crisis of the company, the partnership firm helps it by paying money to it to discharge its obligations or undertakes and discharges obligations of the company directly and gets a credit in the books of the company and in other ways. As on December 31, 1976, the company owed to the partnership firm a sum of Rs. 24, 43, 601.87, which was reduced to Rs. 6, 40, 000 as on March 31, 1979. The money advanced by the partnership firm to the company was the money deposited with the partnership firm by the members of the public. While so, the Reserve Bank Dir