JAYANT VERMA & ORS. versus UNION OF INDIA & ORS.

Citation: [2018] 2 S.C.R. 679 · Decided: 16-02-2018 · Supreme Court of India · Bench: R.F. NARIMAN · Disposal: Directions issued

Cited by 3 judgment(s) · cites 13 · see the full citation network in Lexace

Judgment (excerpt)

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JAYANT VERMA & ORS.
v.
UNION OF INDIA & ORS.
(Writ Petition (Civil) No. 134 of 2013)
FEBRUARY 16, 2018
[R. F. NARIMAN AND NAVIN SINHA, JJ.]
Banking Regulation Act, 1949 –  s.21A – Constitutional
validity of – Held: s.21A is  valid as it is part of an enactment which,
in pith and substance, is relatable to Entry 45, List I of the Seventh
Schedule to the Constitution – However, insofar as s.21A incidentally
encroaches upon the field of relief of agricultural indebtedness, set
out in Entry 30, List II, it will not operate only in States where there
is a State Debt Relief Act which deals with the subject matter of
relief of agricultural indebtedness, where the State Debt Relief Act
covers debts due to “banks”, as defined in those Acts – In States
where the State Debt Relief Act does not apply to banks at all, or
applies only to certain specified banks, s.21A will, in the former
situation, apply in such States, and, in the latter situation, apply
only in respect of loans made to agriculturists where such loans are
given by banks other than the banks specified or covered by the
concerned State Debt Relief Act, as the case may be – Constitution
of India – Seventh Schedule List I Entry 45 – Judicial review –
Usurious Loans Act, 1918 – State Debt Relief Legislations.
Banking Regulation Act, 1949 – s.21A – Non-obstante clause
– Interpretation of – Whether s.21A can be said to prevail over
State Debt Relief Act in the event of a clash between the two – Held:
So far as relief of agricultural indebtedness is concerned, where
there is State legislation on the same subject matter which directly
clashes with s.21A, s.21A will have to give way to the State Debt
Relief Act insofar as relief from agricultural indebtedness due to
banks is concerned – The non-obstante clause in s.21A cannot
override a State Debt Relief Act in this situation, as Parliament cannot
give itself supremacy over State legislation where none exists under
the Constitution – If this were not the case, the exclusive power of
the States to make laws within List II would become illusory, and
“Parliamentary paramountcy” would trap many a beneficent State
legislation made within its exclusive domain.
  [2018] 2 S.C.R. 679
  679
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SUPREME COURT REPORTS
[2018] 2 S.C.R.
Constitution of India – Seventh Schedule, List II, Entry 30 –
Interpretation of Entry 30 – The expression “relief of agricultural
indebtedness” does not take colour from the expression “money
lending and money lenders” preceding it in Entry 30 List II  –  The
two expressions are separated by a semicolon which shows that
they are  not inextricably connected – Thus, money lending is not
restricted to the agricultural sector but includes within its scope
money lent to all person including purely commercial transactions
– Interpretation of Constitution.
Constitution of India – Seventh Schedule, List I, Entry 45 –
Banking – Whether s.21A of Banking Regulation Act trenches upon
Entry 30, List II – Held: In pith and substance, the Banking
Regulation Act fall within Entry 45, List I, but insofar as relief of
agricultural indebtedness is concerned, s.21A certainly trenches
upon Entry 30, List II – Banking Regulation Act, 1949 – s.21A –
Doctrine of pith and substance.
Constitution of India – Seventh Schedule, List I, Entry 45;
List II Entry 18 and 30 – Agricultural indebtedness, relief of
agricultural indebtedness and banking – How they all fall under
different Entries – Held: Qua the general entry “banking” under
Entry 45, List I, which deals with banks of all kinds and the lending
by banks as well as recovery of debts by banks generally, Entry 30,
List II, which deals with relief of agricultural indebtedness, is special,
for the reason that indebtedness itself is only one species of banking
and agricultural indebtedness is a sub-species thereof – The species
of indebtedness is within Entry 45, List I, whereas the sub-species
of agricultural indebtedness is within Entry 18, List II – It is only
relief of agricultural indebtedness, which is a sub-sub-species of
indebtedness, which is relatable to Entry 30, List II.
Constitution of India –  Art.246 – Federal supremacy –
Doctrine of pith and substance – Doctrine of incidental trenching
and unoccupied field – Once the spheres of both the entries i.e.
State List Entry and Union List Entry have been delineated, the
doctrine of pith and substance comes in to test whether a particular
legislation is referable, as a whole, to an entry i

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