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2025 Supreme(Online)(Kar) 30695

KARNATAKA HIGH COURT
MR. M. NAGAPRASANNA, J
KARNATAKA HIRE PURCHASE ASSOCIATION – Appellant
Versus
THE STATE OF KARNATAKA – Respondent


Advocates:
For the Appellants/Petitioners:SRI UDAY HOLLA, SR.ADVOCATE, SRI SANJAY H.SETHIYA, ADVOCATE
For the Respondents:SRI K.SHASHIKIRAN SHETTY, AG, SMT.ANISHKA VAISHNAV, ADVOCATE, SRI SHAMANTH NAIK, HCGP

Table of Content
1. petitioner's challenge to the ordinance's constitutionality. (Para 1 , 2)
2. arguments regarding the ordinance's definitions and implications. (Para 3 , 4 , 5 , 6)
3. consideration of issues about judicial review of the ordinance. (Para 7 , 8 , 9)
4. failure to demonstrate the ordinance's manifest arbitrariness. (Para 10 , 11 , 12)
5. object and efficacy of the ordinance. (Para 13 , 14 , 15)
6. final dismissal of the petition. (Para 16 , 17)

CAV ORDER

The petitioner, an Association of hire purchasers in the State of Karnataka is before the doors of this Court calling in question constitutional validity of an Ordinance viz., the Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025 (‘the Ordinance’ for short) as being shrouded with ambiguity and steeped in arbitrariness and beyond the legislative competence of the State Government As a consequence, thereof, it also seeks a writ in the nature of mandamus to clarify that motor vehicle/Asset Financing businesses are outside the purview of the Ordinance.

2. Facts, in brief, germane are as follows:-

The petitioner claims to be an Association registered under the Karnataka Societies Registration Ac

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