The central legal point established in the judgment is that the provisions of the Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003 do not apply to cooperative societies.

This is a strange Writ Petition filed by an Association styling itself as Kovai Mavatta Anaithu Vani/Sanga Kadan Petror Nala Sangam represented by its Secretary. The prayer of the petitioner is for a direction to the respondents, namely State of Tamil Nadu and the Special Officers of of the Sirumugai Cooperative Society and Sulur Vettu Vasathi Sangam to charge only 6% simple interest on the principal amount advanced by them to the members of the petitioner Sangam and also collect the arrears in reasonable instalments and pass such orders this Court deem fit in the circumstances of the case.

2. It is claimed bythe petitioner association that it is a Registered Society and the members of the Society are residents of Coimbatore District. Their members are mainly engaged in manufacture of power looms. It is also claimed that the members of the petitioner Association have availed long term loan from various housing Cooperative Societies in order to purchase a plot in their own name and interest for such loans were fixed at 11% as per norm repayable in 5 to 8 years. The members of the Association also repaid 25% to 50% of the loan amount along with interest.

3. But, however, since the year 1998, they could not pay back the loan amount and the amount to be paid accumulated in a very high proportion. Therefore, the members of the petitioner are making claim for the waiver of penal interest and compound interest. Since the Deputy Registrar of Coimbatore Zone had sent a circular dated 27. 2005 directing the members to pay back the arrears, the petitioner association is forced to file the present Writ Petition.

4. The contention raised by the petitioner in the affidavit was that the interest charged by the Housing Societies are exorbitant and it is contrary to the provisions of the Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003. Therefore, in the light of the State enactment, they must be directed to pay only 6% interest and not 11%.

5. By virtue of the provisions of the Act, persons are prohibited from charging exorbitant interest on loan advanced and the term exorbitant interest" defined in Section 2(3) of the Act includes daily vatti, hourly vatti, kandh vatti, meter vatti and thandal. Therefore, any such persons, who are charging exorbitant interest were liable to be prosecuted.

6. By virtue of Section 12 of the Act, the provisions of the Tamil Nadu Money-lenders Act insofar as they are applicable to Money-lenders shall mutatis mutandis apply to a person referred to in Section 3 of the Act. A perusal of the Tamil Nadu Money-lenders Act shows that the said Act has been exempted in respect of the application to Cooperative Societies.

7. Section 2(2) of the Tamil Nadu Money-lenders Act, 1957 defines "Cooperative Society" as a society registered or deemed to be registered under the Tamil Nadu Cooperative Societies Act, 1961, which has been replaced by the Tamil Nadu Act 31 of 1983. The term "loan" defined as per section 2(6)(ii) of Tamil Nadu Money-lenders Act makes it clear that the term "loan" will not include an advance made by a Cooperative Society. The term "money-lender" as defined under section 2(8) of the Tamil Nadu Money-lenders Act also makes it clear that the said term will not include a Cooperative Society.

8. In the light of the above, the reliefs claimed by the petitioner are misconceived and the Writ Petition lacks in merit and accordingly it stands dismissed. The connected

Miscellaneous Petitions stand closed. No costs.