INDUSIND BANK Vs. STATE OF A.P.
LAWS(TLNG)-2023-2-114
HIGH COURT OF TELANGANA
Decided on
February 14,2023
Indusind Bank
Appellant
VERSUS
STATE OF A.P.
Respondents
Referred Judgements :-
BHUSHAN BOSE VS. RAMA SUNDARI DEBI [REFERRED TO]KANTA MEHTA VS. UNION OF INDIA [REFERRED TO]
EXPRESS HOTELS PVT. LTD. VS. STATE OF GUJARAT [REFERRED TO]
KRISHI UPAJ MANDI SAMITI VS. SHIV SHAKTI KHANSARI UDYOG [REFERRED TO]
K C GAJAPATI NARAYAN DEO VS. STATE OF ORISSA [REFERRED TO]
BOARD OF THISTEES AYURVEDIC AND UNANI TIBIA COLLEGE DELHI VS. STATE OF DELHI NOW DELHI ADMINISTRATION [REFERRED TO]
FATEHCHAND HIMMATLAL MAHADEO VS. STATE OF MAHARASHTRA [REFERRED TO]
DELHI CLOTH AND GENERAL MILLS COMPANY LIMITED ARVIND MILLS LIMITED MADHUSUDAN VEGETABLE PRODUCTS CO LIMITED MODI SPINNING AND WVG MILLS CO LIMITED GOETZE INDIA LIMITED VS. UNION OF INDIA [REFERRED TO]
K RAMANATHAN VS. STATE OF TAMIL NADU [REFERRED TO]
INDIAN ALUMINIUM COMPANY LIMITED VS. KARNATAKA ELECTRICITY BOARD [REFERRED TO]
POLAKI MOTORS VS. STATE OF ORISSA [REFERRED TO]
KRISHNA BHIMRAO DESHPANDE VS. LAND TRIBUNAL DHARWAD [REFERRED TO]
T VELAYUDHAN ACHARI VS. UNION OF INDIA [REFERRED TO]
KARTAR SINGH KRIPA SHANKAR RAI VS. STATE OF PUNJAB [REFERRED TO]
SOUTH INDIAN FILM CHAMBER OF COMMERCE MADRAS VS. ENTERTAINING ENTERPRISES MADRAS [REFERRED TO]
ASSOCIATED TIMBER INDUSTRIES VS. CENTRAL BANK OF INDIA [REFERRED TO]
UNION OF INDIA VS. SHAH GOVERDHAN L KABRA TEACHERS COLLEGE [REFERRED TO]
DHARAM DUTT VS. UNION OF INDIA [REFERRED TO]
STATE OF WEST BENGAL VS. KESORAM INDUSTRIES LIMITED [REFERRED TO]
GOVERNMENT OF A P VS. J B EDUCATIONAL SOCIETY [REFERRED TO]
BHANUMATI VS. STATE OF UP [REFERRED TO]
K K BASKARAN VS. STATE [REFERRED TO]
STATE OF TAMIL NADU VS. K SHYAM SUNDER [REFERRED TO]
A P DAIRY DEVELOPMENT CORPORATION VS. B NARASIMHA REDDY [REFERRED TO]
STATE OF KERALA VS. MAR APPRAEM KURI CO. LTD [REFERRED TO]
TATA MOTORS LIMITED VS. STATE OF WEST BENGAL [REFERRED TO]
NEW HORIZON SUGAR MILLS LTD VS. GOVT. OF PONDICHERRY [REFERRED TO]
JUDGEMENT
PINAKI CHANDRA GHOSE, J. -
(1.)In these writ petitions, the petitioners seek to challenge the validity of the Andhra Pradesh Micro Finance Institutions (Regulation
of Money Lending) Act, 2011 (for short, 'the Micro Finance Act') as
being beyond the competence of the Andhra Pradesh Legislature by
reason of Article 246 of the Constitution of India and violative of
Articles 14, 19, 20 and 21 of the Constitution of India.
(2.)Since the issues raised in these four writ petitions are similar, all the writ petitions were clubbed together, heard and are being disposed of by this common order. For the sake of convenience, the facts in Writ Petition No.25891 of 2010 may be noticed.
(3.)The petitioner is a company registered under the Companies Act, 1956. The concept of micro finance was acclaimed all over the world and was introduced in the country some time in 2005. According to the petitioner, more than 800 micro finance institutions are functioning in India. The petitioner company has got 2226 branches all over India with a borrower membership of 73 lakh women. The petitioner disburses small loans ranging from Rs.2000.00 to Rs.12,000.00 repayable within one year. The loans are disbursed to a group of ten members without any collateral security and each borrower stands guarantee for the rest of nine. The loans are offered to the women belonging to lower strata of the society for various purposes. The activities of the petitioner company are spread over the States of Andhra Pradesh, Karnataka, Orissa and West Bengal. The petitioner states that the recovery rate is 99% and hence the company is able to maintain the capital adequacy ratio of 28.3 as against the prescription of 15% by the Reserve Bank of India.
(2.)Since the issues raised in these four writ petitions are similar, all the writ petitions were clubbed together, heard and are being disposed of by this common order. For the sake of convenience, the facts in Writ Petition No.25891 of 2010 may be noticed.
(3.)The petitioner is a company registered under the Companies Act, 1956. The concept of micro finance was acclaimed all over the world and was introduced in the country some time in 2005. According to the petitioner, more than 800 micro finance institutions are functioning in India. The petitioner company has got 2226 branches all over India with a borrower membership of 73 lakh women. The petitioner disburses small loans ranging from Rs.2000.00 to Rs.12,000.00 repayable within one year. The loans are disbursed to a group of ten members without any collateral security and each borrower stands guarantee for the rest of nine. The loans are offered to the women belonging to lower strata of the society for various purposes. The activities of the petitioner company are spread over the States of Andhra Pradesh, Karnataka, Orissa and West Bengal. The petitioner states that the recovery rate is 99% and hence the company is able to maintain the capital adequacy ratio of 28.3 as against the prescription of 15% by the Reserve Bank of India.
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