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

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

Section 21A of the Banking Regulation Act, 1949 is constitutionally valid, as it predominantly relates to Entry 45, List I ('banking'). However, insofar as s.21A incidentally encroaches upon the field of relief of agricultural indebtedness under Entry 30, List II, it will not operate in States with State Debt Relief Acts covering debts owed to banks, and will operate subject to exclusions based on whether such Acts cover banks.

Parties
Petitioner: Jayant Verma & Ors.; Respondent: Union of India & Ors.
Jurisdiction
India
Judgment Date
16 February 2018
Procedural Posture
Writ Petition (civil) No. 134 of 2013 / Final Judgment
Outcome
Section 21A of the Banking Regulation Act is upheld as valid, subject to restrictions regarding State Debt Relief Acts.
Legal Topics
Legislative Competence, Interplay of Central and State Laws, Doctrine of Pith and Substance, Paramountcy Principle, Interpretation of Non Obstante Clause
Constitutional Law Banking Law Legislative Competence Interplay of Central and State Laws Doctrine of Pith and Substance Paramountcy Principle Interpretation of Non Obstante Clause

Case Brief

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Parties

Jayant Verma & Ors.

Petitioner

Union of India & Ors.

Respondent

Procedural Posture

Writ Petition (civil) No. 134 of 2013 / Final Judgment

Legal Issues

  1. 1 Constitutional validity of s.21A of Banking Regulation Act, 1949
  2. 2 Whether s.21A prevails over State Debt Relief Acts in case of conflict
  3. 3 Interpretation of Entry 30, List II and Entry 45, List I, Seventh Schedule

Ratio Decidendi

Section 21A of the Banking Regulation Act, 1949 is constitutionally valid, as it predominantly relates to Entry 45, List I ('banking'). However, insofar as s.21A incidentally encroaches upon the field of relief of agricultural indebtedness under Entry 30, List II, it will not operate in States with State Debt Relief Acts covering debts owed to banks, and will operate subject to exclusions based on whether such Acts cover banks.

Court Disposition

Section 21A of the Banking Regulation Act is upheld as valid, subject to restrictions regarding State Debt Relief Acts.

Orders

  • Section 21A applies except where specific State Debt Relief Acts cover debts owed to banks; elsewhere, its operation is as outlined in the judgment.
  • Constitutional challenge is answered; no relief granted to petitioners.