Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Gujarat Rural Debtors Relief Act 1976 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Gujarat Rural Debtors Relief Act, 1976: Constitutional validity of.Section 14(2)--Expression 'Or an order reducing his debt is made'- Held not violative of Articles 19(1)(f) and (g).Constitution of India, 1950: Article 19(1)(f) and (g)--Fundamental Rights-Restrictions on-Reasonableness of Restrictions-Factors to be taken into account-Debt Relief Act-Provision enabling debtors to get back property given as security to creditors-Held not unreasonable restrictions.With a view to protecting weaker sections of the society against exploitation by non-institutional creditors, the State of Gujarat enacted the Gujarat Rural Debtors Relief Act, 1976. Section 14(2) of the Act provides that where a certificate of discharge of any debt is granted to a debtor or an order reducing his debt is made under section 8, every property pledged or mortgaged by such debtor as a security of such debt shall stand released in favour of such debtor and the creditor shall forthwith return such property to the debtor. The Constitutional validity of the Act was challenged by some creditors before the High Court of Gujarat which upheld the same except that the expression 'or an order reducing his debt is made' used in sub-section (2) of Section 14 was ultra vires Articles 19(1) (f) and 19(1) (g) of the Constitution. In striking down the said expression the High Court held that (i) if the Legislature has thought fit that at least in some cases a part of the debt should be repaid by the debtor to his creditor, that part at least much remain secured until it is repaid. To deprive a small money-lender of his cover of protection after telling him that he is entitled to recover some amount form his debtor, is, no reasonable restriction within the meaning of Article 19(1) (f) and Article 19(1)(g) of the Constitution; and (ii) it is more reasonable to think that the security given by a debtor to his creditor should remain intact in the hand of bis creditor until the debtor pays up bis scaled down debt. To hold otherwise is to render the adjudicated debt of the creditor insecure and to expose him, for all intents and purposes, to the danger of losing it over a period of time during which it has been made repayable in instalments. Against the decision of the High Court, State of Gujarat preferred appeals in this Court. |
Judge | Hon'ble Mr. Justice N. Venkatachala |
Neutral Citation | 1995 INSC 159 |
Petitioner | State Of Gujarat |
Respondent | Vora Saiyedbhai Kadarbhai And Ors. |
SCR | [1995] 2 S.C.R. 470 |
Judgement Date | 1995-03-02 |
Case Number | 8439 |
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