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TMI Blog2023 (3) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... l, Mr. Saurabh Bindal, learned counsel representing Mr. Keshav Bhoopal For the Respondents : Mr. A.Sanjeev Kumar, learned Special Government Pleader attached to the office of learned Additional Advocate General representing State of Telangana., Mr. Govind Reddy, learned Special Counsel representing State of Andhra Pradesh.,Mr. B.Nalin Kumar, learned counsel representing Reserve Bank of India (RBI). COMMON ORDER: PER THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN This order will dispose of Writ Petition Nos.25891 of 2010, 25894 of 2010, 25999 of 2010 and 3823 of 2012. 2. We have heard Mr. D.Prakash Reddy, learned Senior Counsel representing Mr. Lokirev Preetham Reddy, learned counsel for the petitioner in W.P.No.25891 of 2010; Mr. L.Ravi Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le, the Andhra Pradesh Reorganization Act, 2014 came into effect from 02.06.2014 bifurcating the composite State of Andhra Pradesh into the States of Telangana and Andhra Pradesh. Resultantly, the Andhra Pradesh Micro Finance Institutions (Regulation and Money Lending) Act, 2011 (was adopted by the State of Telangana whereafter a new enactment being Telangana Micro Finance Institutions (Regulation of Money Lending) Act, 2011 came to be enacted. 7. In Civil Appeal No.4244 of 2019 and batch, Supreme Court passed an order on 25.11.2019 taking the view that the High Court could not have abdicated its responsibility of deciding on the legislative competence of the Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a High Court. It was thereafter that NBFCs operating in the State of Kerala filed civil appeals before the Supreme Court. 10. The Bombay Money Lenders Act, 1946 which was applicable to the State of Gujarat was invoked by the Registrar against NBFCs operating in the State of Gujarat in the year 2009. Challenging such action, the NBFCs operating in the State of Gujarat approached the High Court of Gujarat. During pendency of the writ petitions before the Gujarat High Court, the decision of the Kerala High Court came. A learned Single Judge of the Gujarat High Court did not agree with the view taken by the Kerala High Court and quashed the notices issued to the NBFCs under the Bombay Money Lenders Act, 1946. Thereafter, legislature of the Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the expression "money lenders" under the State enactments. After a thorough examination of all relevant aspects of the matter including Chapter III-B of the RBI Act, Supreme Court held as follows: "6.19 Once it is found that Chapter III-B of the RBI Act provides a supervisory role for the RBI to oversee the functioning of NBFCs, from the time of their birth (by way of registration) till the time of their commercial death (by way of winding up), all activities of NBFCs automatically come under the scanner of RBI. As a consequence, the single aspect of taking care of the interest of the borrowers which is sought to be achieved by the State enactments gets subsumed in the provisions of Chapter III-B." 11.1. Thus, it has been held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst an NBFC in the State of Tamil Nadu. Supreme Court clarified that though it had not examined provisions of the Tamil Nadu Pawn Brokers Act, 1943 and the Tamil Nadu Money Lenders Act, 1957, the principles of law laid down in Nedumpalli Finance Company Limited (supra) would equally apply to these State enactments also. 12. In the hearing today, we have examined the scheme and provisions of the Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2011 as well as the Telangana Micro Finance Institutions (Regulation of Money Lending) Act, 2011 and we find that both the enactments are pari materia to the Kerala Act as well as to the Gujarat Act. 13. That being the position, while we decline the relief sought for in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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