04 August 1992
Supreme Court
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DMAI Vs

Bench: SHARMA,L.M. (J)
Case number: W.P.(C) No.-002603-002611 / 1982
Diary number: 63679 / 1982


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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.