IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE KURIAN JOSEPH FRIDAY, THE 29TH AUGUST 2008 / 7TH BHADRA 1930 WP(C).No. 14958 of 2005(E) ---------------------------------------- PETITIONER: ------------------- K.THAHA, MANAGING PARTNER, THAZHAVILAKOM BANKERS, PUTHENTHOOPE, THIRUVANANTHAPURAM. BY ADV. SRI.S.RAJASEKHARAN NAIR RESPONDENTS: ------------------------ 1. INSPECTING ASSISTANT COMMISSIONER, COMMERCIAL TAXES, PEROORKADA, THIRUVANANTHAPURAM. 2. THE DEPUTY COMMISSIONER, COMMERCIAL TAXES, VANCHIYOOR, THIRUVANANTHAPURAM. 3. THE STATE OF KERALA, REP. BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. BY SPL. GOVERNMENT PLEADER SRI.VINOD CHANDRAN FOR R1 TO 3 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 29/08/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) NO. 14958/2005 APPENDIX PETITIONERS EXHIBITS EXT.P1:- COPY OF THE PENALTY ORDER NO.T.5/2002-03 DT/ 12/8/04 ISSUED BY THE IST RESPONDENT. EXT.P2:- COPY OF THE BROCHURE ISSUED BY THE STATE BANK OF INDIA INDICATING THE TARIFF OF CHARGES. EXT.P3:- COPY OF THE JUDGMENT IN WP(C) NO.7981/05 (A) DT. 14.3.05 OF THIS HON. COURT. EXT.P4:- COPY OF THE HEARING NOTE SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT ON 4.4.05. EXT.P5:- COPY OF THE ORDER NO.KML(A) NO.176/04/DT. 28.4.05 OF THE 2ND RESPONDENT. EXT.P6:- COPY OF THE REQUEST SUBMITTED BY THE PETITIONER TO THE IST RESPONDENT DT. 24.5.05. /TRUE COPY/ P.A. TO JUDGE tss KURIAN JOSEPH, J. ---------------------------------------------- W.P.(C) No.14958 of 2005 ---------------------------------------------- Dated 29th August, 2008. J U D G M E N T The issue raised in this writ petition regarding the validity of the second proviso to sub-section (1) of Section 7 of the Kerala Money Lenders Act and the challenge on the consequential notification is covered in favour of the petitioner by the common judgment in W.P(C)Nos.11891 and 12021 of 2005. It has been held in the judgment that the impugned notification is not issued in tune with proper interpretation given to the second proviso and hence the same is not enforcible. It has been further held that the notification will apply to such types of loans for which interest rate levied by the commercial banks is around 10%. In all other cases, where the interest rate of commercial banks is above 12%, it was declared that the petitioners can ignore the notification without being visited by any penal consequences. There shall be a similar declaration in this case also. The writ petition is disposed of as above. KURIAN JOSEPH, JUDGE. tgs KURIAN JOSEPH, J ---------------------------------------------- W.P.(C) No.14958 of 2005 ---------------------------------------------- J U D G M E N T Dated 29th August, 2008.