M/S P. VAIKUNTA SHENOY & CO. vs P. HARI SHARMA

The Supreme Court held that the plaintiff-appellant was not a money-lender under Section 2(10) of the Karnataka Money Lenders Act, 1961, as the primary purpose of advancing loans was to ensure a regular supply of areca nuts, not to earn interest. The Court emphasized the need for purposive construction of the statute, stating that the object of the Act is to prevent exploitation by money-lenders. Consequently, the Court reversed the Karnataka High Court's decision and upheld the Trial Court's decree in favor of the plaintiff-appellant.