State Of Kerala And Others v. Mar Appraem Kuri Company Limited And Another

Order

1. These matters were placed before this Bench pursuant to the Reference Order dated 13-2-2007 (2012) 7 SCC 149 passed by a two-Judge Bench. The Bench doubted a three-Judge Bench decision of this Court in Pt. Rishikesh v. Salma Begum (1995) 4 SCC 718.

2. The Kerala Chitties Act, 1975 (Kerala Act 23 of 1975) has been in force in the State of Kerala. Parliament has enacted the Chit Funds Act, 1982. By Section 90 of the Central Act, the Kerala Chitties Act, 1975 (Kerala Act 23 of 1975) was repealed subject to Section 6 of the General Clauses Act, 1897. The Central Act enacted by Parliament is not extended to the State of Kerala.

3. The question raised under Article 254(2) of the Constitution of India is: whether the provisions as contained in the (Central) Chit Funds Act, 1982 has got overriding effect over the State Act or not? The earlier decision of this Court in Pt. Rishikesh v. Salma Begum (1995) 4 SCC 718 takes a view that it has got the force even if it was not extended to that particular State. This view, if accepted, would lead to a situation where the Kerala Act would stand repealed and there would not be any further corresponding enactment to cover the area dealt with by State legislation.

4. Hence, these matters, in our opinion, require consideration by a Bench of five Judges. Accordingly, we refer these matters to a Constitution Bench of five Hon'ble Judges.

Court Masters