JACOB MATHEWS Vs. DEPUTY CHIEF OFFICER RESERVE BANK OF INDIA
LAWS(KER)-1963-9-5
HIGH COURT OF KERALA
Decided on September 20,1963

JACOB MATHEWS Appellant
VERSUS
DEPUTY CHIEF OFFICER, RESERVE BANK OF INDIA Respondents

JUDGEMENT

- (1.)This is an appeal by the petitioner in O. P. No. 3089 of 1961. The only question for determination is whether S.49A of the Banking Companies Act, 1949, is ultra vires of the Constitution or not.
(2.)That section was introduced into the Act by the Banking Companies (Amendment) Act, 1959. It reads as follows:
"No person other than a banking company, the Reserve Bank the State Bank, of India or any other banking institution notified by the Central Government in this behalf shall accept from the public deposits of money withdrawable by cheque:

Provided that nothing contained in this section shall apply to any savings bank scheme run by the Government."

(3.)The validity of this section came up for consideration in Itty Kuriyan v. Union of India & Another 1961 KLJ 725. In that case Vaidialingam, J., after dealing with all the points relevant to the question, said:
"I have applied the various tests laid down by their Lordships of the Supreme Court in considering the vires of the enactment in question. Applying those principles and the tests : laid down by the various decisions referred to above, in my opinion, the attack made by the petitioners on S.49A of the Banking Companies Act, 1949 cannot be sustained, and all the contentions raised before me have to be rejected. In my opinion, the section in question does not suffer from any of the infirmities alleged by the petitioners."

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