Full Judgment Text
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PETITIONER:
S. GANAPATHRAJ SURANA AND ORS. ETC. ETC.
Vs.
RESPONDENT:
STATE OF TAMIL NADU ETC. ETC.
DATE OF JUDGMENT04/08/1992
BENCH:
SHARMA, L.M. (J)
BENCH:
SHARMA, L.M. (J)
MOHAN, S. (J)
CITATION:
1992 SCR (3) 721 1993 SCC Supl. (2) 565
JT 1992 (5) 310 1992 SCALE (2)379
ACT:
Constitution of India, 1950-Seventh Schedule-List II,
Entry 30-Legislative competency of the Legislatures of the
Tamil Nadu and Karnataka in legislating Tamil Nadu Debt
Relief Act, 1980 and Karnataka Debt Relief Act, 1976-
Construction of items in the Lists-Method.
Constitution of India, 1950-Articles 14, 19(1)(f),
(g), 19(5)(6), 39-Whether Tamil Nadu Debt Relief Act, 1980
and Karnataka Debt Relief Act, 1976 ultra vires.
Constitution of India, 1950-Article 19(5)(6)-Money
lending business-Whether restricted by legislating
legislations to secure social and economic justice-
Interpreting constitutional provisions for judging impact of
enactments-Court’s duty to balance fundamental rights and
large interest of society.
Word and Phrases-"Relief", "Indebtedness"-Meaning of.
HEADNOTE:
In the writ petitions and the appeals similar questions
were raised against the validity of some of the provisions
of the Tamil Nadu Debt Relief Act, 1980 and the Karnataka
Debt Relief Act, 1976.
The petitioners/appellants contended that they being
money-lenders and pawn brokers, their business was not
related to agricultural indebtedness; that the State
Legislatures were incompetent to make any law granting any
relief of non-agricultural indebtedness, adversely affecting
their interest, that those provisions of the Tamil Nadu and
Karnataka Acts which purported to extinguish the debts of
all kinds incurred by small farmers, landless labour and
persons belonging to weaker class were ultra vires of
Articles 14 and 19(1)(f),(g).
The appellants in C.A.No.1326 of 1979 also contended
that the impugned provisions were violative of the guarantee
under Article
722
19(1)(f),(g) of the Constitution, as the Karnataka Act was
passed before 19(1)(f) was omitted from the Constitution’
that it was a constitutional policy for entrusting only such
matters concerning agriculture to the State and leaving the
remaining field either for the Union’s list I or the
Concurrent List III’ that as a result of the proclamation of
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Emergency, the enforcement of the fundamental rights was
suspended but the rights themselves did not disappear; that
when the Emergency was withdrawn, the impediment by way of
suspension of the enforcement of the rights disappeared and
the Act, if found to be in violation of the fundamental
rights had to be declared ultra vires; that as a direct
result of the Karnataka Act a particular class of debts
automatically disappeared and the creditors were deprived of
their right to hold their property in the shape of the loan
due to them.
Dismissing the writ petitions, appeals and Special
Leave Petition, this Court
HELD : 1.01. The cardinal rule of interpretation that
words should be read in their ordinary, natural and
grammatical meaning is subject to this rider that while
construing a constitutional document conferring legislative
power the most liberal construction should be put upon the
words so that the same may have effect in their widest
amplitude. [727G]
1.02. None of the items on the Lists is to be read in a
narrow or restricted sense, and that each general word
should be held to extend to all ancillary or subsidiary
matter which can fairly and reasonably be said to be
comprehended in it. [728A]
Navinchandra Mafatlal v. The Commissioner of Income
Tax, Bombay City, [1955] 1 SCR 829 at 836-837’ United
Provinces v. Mst. Atiqa Begum and others, (1940) F.C.R. 110’
A.L.S.P.P.L. Subrahmanyam Chettair v. Muttuswami Goundan,
(1940) FCR 188; Prafulla Kumar Mukherjee & Ors. v. The Bank
of Commerce Ltd. Khuina, Indian Appeals, (L.R. Vol. LXXIV)
23; Veerappa v. Chinasami, (1950) II M.L.J. 328;
Mannikkasundara v. R.S. Nayudu, (1946) F.C.R. 67 and State
of Madras v. Gannon Dynkerley & Co., (Madras) Ltd., [1959]
SCR 379, referred to.
1.03. The purpose of inclusion of the subsequent words
in entry No. 30 of List II of the Seventh Schedule to the
Constitution was to illustrate the scope and the object of
the legislation envisaged by the opening
723
expression. The latter part serves another purpose also.
[729B]
1.04. There was some scope for controversy as to the
area covered by an entry limited to the first part of the
present Entry No.30. [729C]
1.05. The decision giving a wide meaning to the
expression could not be binding on the Supreme Court and so
long the matter was not finally settled by this Court, the
courts in the meantime could have been flooded by
unnecessary litigation. This has been avoided by including
the second part which should be treated as illustrating the
scope and object of the legislation in the first part. [729D]
1.06. The second part has been included by way of
abundant caution. The use of the word "relief" is also
conscious so as to emphasise the wide range of order which
can be passed bestowing benefits on the debtors of various
kinds. Taking a hypothetical case where the debtor has
received grains as loan on a condition to return the same in
large quantity, it is open to the legislature to reduce the
burden of the debtor by providing for a monetary relief to
be calculated in a particular manner. [729E]
1.07. The word "indebtedness" by itself also could
have given occasion for controversy on the ground of
vagueness; but in the context it has been mentioned in the
Entry, there is no room for doubt left. [79F]
1.08. There is no merit in the argument of the learned
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counsel that a scheme was adopted in the Constitution with
respect to distribution of the subjects in the three lists
to the Seventh Schedule, and that the State legislature was
entrusted only with agricultural matters. The large number
of entries in List II negative such an inference. [729G]
A.L.S.P.P.L. Subrahmanyam Chettiar v. Muttuswami
Goundan, (1940) FCR 188; Bank of Commerce Ltd. v. Kunja
Behari Kar and Upendra Chandra Kar, (1944) FCR 370; Prafulla
Kumar Mukherjee & Ors. v. The Bank of Commerce Ltd., Khulna,
Indian Appeals, (L.R. Vol. LXXIV) 23; Pathumma and others v.
State of Kerala and other [1978] 2 SCR 537; Fatechand
Himmatlal and others v. State of Maharashtra etc., [1977] 2
SCR 828 and Vora Saiyedbhai Kadarbhai v. Saiyed Intajam
Hussen Sedumiya and others, AIR 1981 Gujarat 154, referred
to.
2.01. So far sub-clause(g) of Article 19(1) is
concerned the impugned law is not putting any restriction on
the carrying of the business at all.
724
What it purports to do is to relieve the burden only of
a category of debtors, who by reason of their poverty
deserve assistance. [731G]
2.02. Both the Acts of Tamil Nadu and Karnataka have
identifiled this group in need of help. The liability of the
other debtors is untouched. The legislative measures, thus
taken, are clearly in furtherance of the directive
principles of the State policy as mentioned in Part IV of
the Constitution, specially Article 39 and are protected by
the provisions of clauses (5) and (6) of Article 19. [731H-
732A]
2.03. The issue cannot be decided merely be examining
the past conduct of those who are chosen for relieving the
burden of an under-privileged class. [732C]
2.04. With a view to secure social and economic
justice, the matter has to be examined from the standpoint
of the interest of the general public and the standard of
reasonableness will very form age to age and be related to
the adjustments necessary to solve the problems which
communities face from time to time. The unfortunate plight
of that section of the people who, placed socially and
economically at a disadvantage, land themselves in debt trap
is well-known for ages. [732D]
2.05. The State legislatures by enacting the laws
under consideration are only fulfilling their obligation by
extending social justice to them. In the Karnataka Act the
group deserving the protection, has been identified as
either a small farmer, or a landless agricultural labourer,
or a person belonging to the weaker section of the people;
and with a view to avoid any vagueness these three sub-
classes have been precise definitions in the spirit in which
the statute has been passed. It is natural to expect that
the debts, thus covered by the beneficial provisions must
have been smaller than those left untouched. [732E]
2.06. Section 3 of the Tamil Nadu Act has also limited
the benefits of the laws to the less privileged section of
the society. The debtors, placed comparatively in better
economic circumstances, contracting loans due to extravagant
habits or for urgently meeting some sudden demand or for
similar reason have been deprived from the benefits of the
Acts. This is a matter of policy to be decided by the State.
The legislature is presumed to be in a position to
appreciate the needs of the people and to judge as to what
remedial reforms are called for. [732G]
725
2.07. In interpreting the constitutional provisions
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for judging the impact of an enactment on the fundamental
rights of the citizen, the court has to take into account
the social setting of the country, the increasing needs of
the nation, the burning problems of the day and the complex
issue facing the people which the legislature in its wisdom
seeks to solve through beneficial legislation; and the
judicial approach in this should be dynamic rather than
static, pragmatic rather than pedantic and elastic rather
than rigid. [733A]
2.08. The temper of the times and the living
aspirations and the feelings of the people must be taken
into consideration while striking a just balance between the
fundamental rights and the larger and broader interests of
society. Judged from this angle both the Act have to be
upheld by virtue of clauses (5) of Article 19. [733B]
Pathumma and others v. State of Kerala and others,
[1978] 2 SCR 537, referred to.
JUDGMENT:
ORIGINAL JURISDICTION : Writ petitions (Civil) Nos.
2603-2611 of 1982 etc. etc.
(Under Article 32 of the Constitution of India).
C.S. Vaidyanathan, Krishnamani, G.L. Sanghi, K. Ram
Kumar, P.R. Ramasesh, Raju Ramachandran, Sandhana
Ramachandra, Abani Kr. Sahu, Mrs. Indu Malini Anantchari,
K.R. Chowdhary, P.N. Ramalingam, V. Balachandran, S.
Srinivasan, S. Ghana Sambandan, R. Mohan, T. Raja, R.
Nedumaran, A.V. Rangam and M. Veerappa for the appearing
parties.
The Judgment of the Court was delivered by
SHARMA, J. Since similar questions have been raised
against the validity of some of the provisions of the Tamil
Nadu Debt Relief Act, 1980 (Tamil Nadu Act 13 of 1980) and
the Karnataka Debt Relief Act, 1976 (Karnataka Act 25 of
1976), these cases have been heard together and are being
disposed of by this common judgment.
2. The case of the petitioners, who are money lenders
and pawnbrokers, is that since their business is not related
to agricultural indebtedness, the State legislatures are not
vested with legislative power to enact a law granting any
relief of non-agricultural indebtedness, adversely affecting
726
their interest. On this ground those provisions of the two
Acts, which purport to extinguish the debts of all kinds
incurred by small farmers, landless labour and persons
belonging to weaker classes before a certain date, are
challenged as ultra vires.
3. Mr. Krishnamani, appearing on behalf of the
petitioners in Writ Petition No. 5431-33 of 1985 (the term
"petitioners" will also include the appellants in the Civil
Appeals) and Mr. G.L. Sanghi, representing some other writ
petitioners, have confined the ground of challenge to
alleged lack of legislative competence on the part of the
State legislatures in relation to debts which ar not
agricultural. Mr. Vaidyanathan, counseled for the appellants
in Civil Appeal No. 1326 of 1979, has besides raising the
question of lack of legislative competence, contended that
the impugned provisions are violative of the guarantee under
Article 19(1) sub-clause (g), as also under under sub-clause
(f), as the Karnataka Act was passed before the clause 1 (f)
of Article 19 was omitted from the Constitution.
4. So far the question of legislative competence is
concerned, the matter arising out of a similar Act passed by
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the Maharashtra legislature was considered by this Court in
Fatehchand Himmatlal and others v. State of Maharashtra
etc., [1977] 2 SCR 828 and the Act was upheld as a valid
piece of legislation. The learned counsel for the
petitioners have contended that the reported judgment did
not take into account many vital relevant considerations,
which have remained undisposed of till now and, therefore,
it cannot be treated to be a binding precedent in the
present cases, which relate to Tamil Nadu and Karnataka
Acts. The argument is that the one small single paragraph in
the reported judgment at page 854F to page 855B does not
even mention the points which are being raised before us and
which have direct bearing on the issue to be decided, and
the reported judgment, therefore, is not helpful in deciding
the present cases. Mr. Vaidyanathan has further added that
so far the grounds based on Article 19 (1) (f) and (g) are
concerned, they were not available when Fateh Chand’s case
was decided by this Court as the result of proclamation of
Emergency, and have to be considered for the first time in
the present cases. Reliance was also placed on the judgment
of the Gujarat High Court in Vora Saiyedbhai Kadarbhai v.
Saiyed Intajam Hussen Sedumiya and others, AIR 1981 Gujarat
154. The learned advocates appearing in the other case have
adopted the arguments addressed by the counsel mentioned
above.
727
5. The State legislature proceeded to enact the Acts
which are in question before us under entry 30 of List II of
the Seventh Schedule to the Constitution, which is in the
following terms :
"30 Money-lending and money-lenders; relief of
agricultural indebtedness."
The argument is that the expression "Money lending and
money lenders" cannot, in the context it has been used, be
given the wider meaning as a result of addition of the words
"relief of agricultural indebtedness" which follow. If the
first part of the entry is construed to cover the large
field, the argument proceeds, the effect would be to render
the second part redundant and otiose, which according to the
established rule of construction has to be avoided.
Referring to entry No. 27 of the Provincial Legislative List
being List II in the Seventh Schedule to the Government of
India Act, 1935 Mr. Vaidyanathan argued that the relevant
part of the entry was simply "money lending and money
lenders" without any further words to follow, and in this
background the expression was understood as having a wide
application. Now, when the Constituent Assembly considered
it fit to subject this part of the entry with further words,
it must be presumed that the intention was to curtail the
scope of the first part of entry 30 and confine it to cover
only agricultural loans and debts. The learned counsel
placed the entries No. 82, 86, 87 and 88 in List I, entries
No. 14, 18, 45, 46, 47, 48 and 49 in List II and entries 6
and 7 in List III and invited us to discern, a
constitutional policy for entrusting only such matters as
may be concerning agriculture to the State and leaving the
remaining field either for the Union’s List I or the
Concurrent List III. We have given our anxious consideration
to the point raised by the learned counsel, but do not find
ourselves in agreement with them and we proceed to indicate
our reasons.
6. The principle to be followed while construing
constitutional provisions is well-settled and need not
detain us long. The cardinal rule of interpretaion that
words should be read in their ordinary, natural and
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grammatical meaning is subject to this rider that while
construing a constitutional document conferring legislative
power the most liberal construction should be put upon the
words so that the same may have effect in their widest
amplitude (see Navinchandra Mafatlal v. The Commissioner of
Income-Tax, Bombay City, [1955] 1 SCR 89 at 836-837). The
Federal
728
Court of India earlier in the United Provinces v. Mst. Atiqa
Begum and Others, (1940) F.C.R. 110, had observed that none
of the items in the Lists is to be read in a narrow or
restricted sense, and that each general word should be held
to extend to all ancillary or subsidiary matter which can
fairly and reasonably be said to be comprehended in it. The
scope of the latter part of Item No. 1 of List Ii of the
Government of India Act, 1935 referred to by Mr.
Vaidyanathan was the subject-matter of the decision of the
Federal Court in A.L.S.P.P.L. Subrahmanyan Chettiar v.
Muttuswami Goundan, (1940) F.C.R. 188. The agreement was
that the Item could not clothe the Provincial Government
with the power to legislate with respect to promissory
notes. The plea was rejected by the majority judgment on the
ground that if the provincial law, in pith and substance,
dealt with money-lending it was not ultra vires if it
incidentally affected promissory notes as security for loan.
This interpretation was accepted as correct by the Privy
Council in Prafulla Kumar Mukherjee & ors. v. The Bank of
Commerce Ltd., Khulna, Indian Appeals, (L.R. Vol. LXXIV) 23
and later by this Court. A similar objection raised on
behalf of the creditors against the law providing for relief
against indebtedness was rejected by the Madras High Court
in Veerappa v. Chinnasami, (1950) II M.L.J. 328. The High
Court declared that the whole gamut of debt liquidation is
within the State legislature’s competence under Entry No.
30, List II of the Seventh Schedule to the Constitution,
including the scaling down of loans, discharging or reducing
the principal or interest et cetera. The learned counsel for
the petitioners also do not suggest that the first part of
the Entry, that is, "Money-lending and money-lenders" does
not, by itself, cover the wider field so as to include the
present Acts. Their argument is that if this expression by
itself and without addition of any further words had
constituted the Entry there was no difficulty but, as a
result of the addition of the further words "relief of
agricultural indebtedness", the scope of the first part gets
reduced so as to exclude non-agricultural indebtedness. We
do not find any merit in this agreement. A query is posed on
behalf of the petitioners : what is the object of inserting
in the entry the latter part. There are several reasons for
doing so.
7. The argument that if the opening general term in an
entry is followed by some more words or phrases the wide
application of the opening term should be interpreted to
have been restricted has been addressed earlier and rejected
by this Court disapproving the application of such a rule
of construction. The Federal Court in Mannikkasundara v.
729
R.s. Nayudu, 1946 F.C.R. 67 observed that the subsequent
words and phrases are not intended to limit the ambit of the
opening general term or phrase; on the contrary to
illustrate the scope and objects of the legislation
envisaged as comprised in the opening term or phrase. These
observations were approved by the Supreme Court in the State
of Madras v. Gannon Dynkerley & Co., (Madras) Ltd., [1959]
SCR 379. The purpose of inclusion of the subsequent words in
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entry No.30 was to illustrate the scope and the objects of
the legislation envisaged by the opening expression.
8. The latter part serves another purpose also. Mr.
Vaidyanathan himself referred to the case where the
creditors had unsuccessfully attempted to construe the words
"money-lending and money lenders" in a narrow sense
excluding non-agricultural indebtedness, which indicated
that there was some scope for controversy as to the area
covered by an entry limited to the first part of the present
Entry NO.30. It has to be appreciated that the decision
giving a wide meaning to the expression could not be binding
on the Supreme Court and so long the matter was not finally
settled by this Court, the court in the meantime could have
been flooded by unnecessary litigation. This has been
avoided by including the second part which should be
treated as illustrating the scope and object of the
legislation in the first part. In other words, we can say
that the second part has been included by way of abundant
caution. The use of the word "relief" is also conscious so
as to emphasise the wide range of orders which can be passed
bestowing benefits on the debtors of various kinds. Taking a
hypothetical case where the debtor has received grains as
loan on a condition to return the same in large quantity, it
is open the legislature to reduce the burden of the debtor
by providing for a monetary relief to be calculated in a
particular manner. The word "indebtedness" by itself also
could have given occasion for controversy on the ground of
vagueness; but in the context it has been mentioned in the
Entry, there is no room for doubt left.
9. We also do not find any merit in the agrument of the
learned counsel that a scheme was adopted in the
Constitution with respect to distribution of the subjects
in the three lists to the Seventh Schedule, and that the
State legislature was entrusted only with agricultural
matters. The large number of entries in List II, other than
those referred to by Mr. Vaidyanathan in his argument,
negative such an inference.
730
10. The further contention that non-agricultural
indebtedness must be treated to be covered by seventh entry
mentioning contracts of different kinds in the Concurrent
List, has also no force. A similar although not identical
argument was attempted before the Federal Court in
Subrahmanyan Chettiar’s case mentioned in paragraph 5 above,
and was rejected on the ground that although the provincial
law in question there dealt with, in pith and substance,
money-lending it could not be condemned on the ground of
being a piece of legislation with respect to negotiable
instruments so as to be invading the field of List I. The
same line of reasoning taken while challenging the Bengal
Money Lenders Act, 1940, however, was accepted by the
Federal Court in Bank of Commerce Ltd. v. Kunja Behari Kar
and Upendra Chandra Kar, (1944) F.C.R. 370, and some of the
provisions of the Bengal Act were declared ultra vires. The
matter was taken in appeal to the Privy Council in Prafull
Kumar’s case (supra) and the pith and substance test relied
upon in Subrahmanyan Chettiar’s case (supra) was accepted as
correct. The Privy council, after taking note of the problem
of overlapping of the subjects in the Federal and the
provincial Lists pointed out that by addition of Concurrent
List many difficulties were solved, but :-
"Subject must still overlap and where they do, the
question must be asked what in pith and substance
is the effect of the enactment of which complaint
is made and in what list is its true nature and
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character to be found. If these question could not
be asked, much beneficent legislation would be
stifled at birth, and many of the subjects
entrusted to provincial Legislation could never
effectively be dealt with."
This rule has been firmly established as aid to
construction of laws in India and is a complete answer to
the questions raised on behalf of the petitioners. The
decisions mentioned above, with which we are in respectful
agreement, cover the cases before us - the only difference
being that the argument before us is based on Entry No. 7 of
List III of the Constitution instead of Entry No 28 of List
I of the Government of India Act, 1935, which is not
material. The question whether the subject-matter of the Act
under consideration by the Privy Council in Prafulla Kumar’s
case (supra) lay in contract was also adverted to in the
judgment.
11. Mr. Sanghi also suggested that the power of the
State legislature
731
was limited to making laws regulatory in nature and did
not extend beyond, so as to extinguish the debts altogether.
This objection again has no merit. The learned counsel is
attempting to put a restricted and limited meaning on the
Entry which is not called for. There are no words in the
Entry to call for restricting the covered field which is
quite wide otherwise.
12. The Karnataka Act has further been challenged on
the ground of violation of Article 19(1)(f), (g) and Article
14. Mr. Vaidyanthan has pointed out that the Act was passed
in 1976 when sub-clause (f) of Article 19(1) was in
existence and it was only in 1979 that it was omitted from
the Constitution. As a result of the proclamation of
Emergency, the counsel proceeded to urge, the enforcement of
the fundamental rights was suspended but the nights
themselves did not disappear. As soon as the Emergency was
withdrawn in March, 1977, the impediment by way of
suspension of the enforcement of the rights disappeared, and
the Act, if found to be in violation of the fundamental
rights, had to be declared ultra vires, and it can be done
so now. The contention is that as a direct result of the Act
a particular class of debts have automatically disappeared.
In other words, the creditors are deprived of their right to
hold their property in the shape of the loan due to them,
without any compensation whatsoever. With respect to the
protection under clause (5), it has been contended that the
impugned provisions being unreasonable cannot be saved.
13. It is urged that the decision in Pathumma and
others v. State of Kerala and others, [1978] 2 S.C.R. 537,
is distinguishable on the ground that by the offending
provisions in that case, relief was granted to an
agriculturist, only if his interest in some immovable
property had been sold in execution of a decree for recovery
of a debt. So far the pawn-brokers are concerned they are
being deprived of not only the interest but the capital
itself, and they may not now be able to carry on their
business any further. As a direct consequence of the
impugned provisions, the petitioners claim that they are
being deprived of the right guaranteed to them by Article
19(1)(g). We do not find any substance in this argument
either. So far subclause (g) is concerned the impugned law
is not putting any restriction on the carrying of the
business at all. What it purports to do is to relieve the
burden only of a category of debtors, who by reason of their
poverty deserve assistance. Both the Act of Tamil Nadu and
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Karnataka have identified this group in need of help. The
liability of the other debtors is
732
untouched. The legislative measures, thus taken , are
clearly in furtherance of the directive principles of the
State policy as mentioned in Part IV of the Constitution,
specially Article 39 and are protected by the provision of
clauses (5) and (6) of Articles 19.
14. The learned counsel has characterised the hardship
placed on the petitioners as unreasonable within the meaning
of clauses (5) and (6) of Article 19 and on that basis
contended that the impugned statutes are violative of sub-
clauses (f) and (g). It was stated by both, Mr. Krishnamani
and Mr. Vaidyanathan, that the petitioners who are now
before this Court have not been accused of any violation of
the earlier laws, and they, therefore, do not deserve the
loss in their business caused by the impugned laws. We are
afraid this suggested approach to test the reasonableness of
the laws is not correct. The issue cannot be decided merely
by examining the past conduct of those who are chosen for
relieving the burden of an underprivileged class. With a
view to secure social and economic justice, the matter has
to be examined from the standpoint of the interest of the
general public and as has been pointed out by this Court
earlier, the standard of reasonableness will very from age
to age and be related to the adjustments necessary to solve
the problems which communities face from time to time. The
unfortunate plight of that section of the people who, placed
socially and economically at a disadvantage, land themselves
in debt trap is well-known for ages. The State legislatures
by enacting the laws under consideration are only fulfilling
their obligation by extending social justice to them. In the
Karnataka Act the group deserving the protection, has been
identified as either a small farmer, or a landless
agricultural labourer, or a person belonging to the weaker
section of the people; and with a view to avoid any
vagueness these three sub-classes have been given precise
definitions in the spirit in which the statute has been
passed. It is natural to expect that the debts, thus covered
by the beneficial provisions must have been smaller than
those left untouched. Similarly section 3 of the Tamil Nadu
Act has also limited the benefits of the laws to the less
privileged section of the society. The debtors, placed
comparatively in better economic circumstances, contracting
loans due to extravagant habits or for urgently meeting some
sudden demand or for similar reason have been deprived from
the benefits of the Acts. This is a matter of policy to be
decided by the State. The legislature is presumed to be in a
position to appreciate the needs of the people and to judge
as to what remedial reforms are called for. It has been held
in Pathumma’s case (supra) that
733
in interpreting the constitutional provisions for judging
the impact of an enactment on the fundamental rights of the
citizens, the court has to take into account the social
setting of the country, the increasing needs of the nation,
the burning problems of the day and the complex issue facing
the people which the legislature in its wisdom seeks to
solve through beneficial legislation; and the judicial
approach in this should be dynamic rather than static,
pragmatic rather than pedantic and elastic rather than
rigid. The temper of the times and the living aspirations
and the feelings of the people must be taken into
consideration while striking a just balance between the
fundamental rights and the larger and broader interests of
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society. We, therefore, hold that judged from this angle
both the Acts have to be upheld by virtue of clauses (5) and
(6) of Article 19. Accordingly all the writ petitions, civil
appeals and the special leave petition is dismissed, but in
the circumstances without costs.
V.P.R. Petitions/Appeals dismissed.