In Brief
Karnataka amended its Money Lenders and Pawn Brokers Acts in 1998 to provide that security deposits would not carry interest, making the change retrospective from 1985. Money lenders and pawn brokers challenged this as violating an earlier judgment that had directed interest be paid. The Supreme Court held that while the prospective amendments are valid and constitutional (non-payment of interest is not arbitrary or violative of Article 14), the retrospective amendments are illegal because they attempt to nullify a court's mandamus, breaching the doctrine of separation of powers. The Legislature can amend statutes to remedy defects, but cannot overturn judicial decisions by introducing wholly new provisions that did not exist when the judgment was rendered.
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