[Act 23 of ]. Preamble. An Act to define, amend and consolidate the law relating to chitties in the State of Kerala;. WHEREAS it is expedient to define, amend. RBI prepared a Draft Bill. The Kerala Chitties Act. The Chit Funds Act. The laws relating to chitties in force of Kerala State. appellant was that the plaintiff has violated the Kerala Chitties Act, and contended that there was no previous sanction Government as required under .

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That, when the State of Kerala intended to amend the State Act in by insertion of Section 4 1ait was bound to keep in mind the fact that there is already a Central law governing chits since Questions to be answered 7.

Supreme Court nullifies Kerala Chit Fund Act – News18

That there can be no repeal by implication unless chittirs inconsistency appears on the face of the two statutes. Provision for continuation of chitties in certain cases. According to the learned counsel for the acf chitties, to bring the Central Chit Funds Act, into operation in kerala chitties act Chjtties the Central Government has to issue a notification in the Official Gazette under Section 1 3.

Rishikesh supra has been correctly decided. Sugarcane Regulation of Supply and Purchase Act,being the State Act was repugnant to Act LXV of enacted by the Parliament which empowered the Central Government vide Section 18G to issue an order regulating distribution of finished articles at fair prices relatable to the scheduled industry. Amount due to defaulting subscriber how dealt with. In other words, Parliament has the power zct the said proviso to override the Finance Act No.

Such a state of affairs will exist only until Parliament may at any time make a law adding to, or amending, varying or repealing the law made by the State Legislature under the proviso to Article Further, each and every aspect relating to the conduct of a Chit as sought to be covered by the State Act has been touched upon by the Central Act.

Article deals with subject-matter of laws made by Parliament and by the Legislatures of States. Singh, kerala chitties act the bringing into force or commencement of keraal Central Act was irrelevant in considering repugnancy under Article 1and that the repugnancy arose when the State law came into conflict with the enactment of the Central law, even when the Central law is not brought into force in the State of Kerala.


Extent of laws made by Parliament and by the Legislatures of States — 1 Subject to the provisions of this Constitution, Parliament may make laws for the whole or any part of the territory of India, and the Legislature of a State may make laws for the whole or any part of the State.

Supreme Court nullifies Kerala Chit Fund Act

While the Parliament has power to make laws for the whole or any part of the territory of India, the Legislature of a State can make laws only for the State or part thereof.

Likewise, the other existing six State laws on Chits, referred to in Section 90 of the Chit Cbitties Act,existing on The answer obviously points to Section 1 3 which authorises the Government to bring the Act into force on a later date by issuing a notification. Chitty when to be wound up. While the legislative power is derived from Articlethe entries in the Seventh Schedule of the Constitution only demarcate the legislative fields of the respective Legislatures and do not confer legislative power as such.

Time and place of conducting chitty. Copies of variola to be given to subscribers and acknowledgements to be filed. Therefore, the State legislature ought to have followed the procedure in Article 2 and ought to have obtained the assent of the President.

Every transfer under chittiee 31 shall be recognised by the foreman unless.

Lastly, learned counsel submitted that a purposive interpretation 11975 Article must be adopted which does not lead to a legislative vacuum. It is also well settled that where 19775 Acts, one passed by the Parliament and the other by a State Legislature, collide and there is no question of harmonising them, then the Central legislation must prevail. Equally is the procedure of the State Legislature. This sub-section was inserted to plug a loophole.

If the amount of future subscriptions or the prize amount has not been invested in accordance with the provisions of sub-section 1 or sub-section 2or if the amount so invested has been withdrawn for purposes other than those for keraal the same has been held in deposit, or if the requirements of sub-section 3 have not been complied with, the foreman shall be punishable with fine which may extend to five hundred rupees.

Cowburn [] 37 C. Therefore, according to the learned counsel, there is no merit in the contention of the State that there would be a legislative vacuum in the State of Kerala if the propositions advanced on behalf of the private chit firms are to be accepted. Of Termination of Chitties. Thus, it is noticeable that throughout Article the emphasis is on law-making by chittiez respective Legislatures. Prized subscriber to give security. Prima facie, there does not appear to us to be any inconsistency between the State Act and the Central Acts.


That where there is no inconsistency but a statute occupying the same field seeks to create distinct and separate offences, no question of repugnancy arises and both the statutes continue to operate in the same field. Martine Green November 26, – In such a case, the Central Act will give way to the State Act only to the extent of inconsistency between the two, and no more.

Kerala Chitties Act, – Legislation – VLEX

II – Of Cjitties and Registration Section 3 – Prohibition of chitty not sanctioned or registered under this Act 1 No chitty shall, after the commencement of this Act, be started and conducted unless the previous sanction of the Government or of such officer as may be empowered by the Government in this behalf is obtained therefore and unless the chitty is registered in accordance with the provisions of this Act: Therefore, according to the learned counsel, the very text of Article makes it clear that a declaration of repugnance by a Court presupposes both laws actually being in operation.

This was the controversy which came before this Court.

Stay of winding up proceedings on insolvency of foreman and transfer of insolvency proceedings. Provided that such substituted security shall not be less than the security given by the foreman under sub-section 1 ; or b on the termination of the chitty, release a part of the security: Where an order refusing to wind up a keralx has been made under this Act, in computing the period of limitation prescribed for any suit or other legal proceedings other than a suit or application in chtities of which the leave of the court has been obtained which might have been brought or made out for the presentation of the petition for winding up the chitty, the period from the date of the presentation of the petition to the date of the order refusing to wind up the chitty shall be excluded.

In the present case, repugnancy is established by both the tests. Security to be given by foreman.

In all such cases, the law made by Parliament shall prevail over the State law under Article 1.

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