Report No. 63
3.7. Act not extended by Central legislation after independence.-
The matter could be viewed from a different angle. The Interest Act, 1839, before independence, was not in operation outside ar.iti§h India of its own force. If it was to be extended to any area outside British India, that could have been done only by suitable Central legislation, or suitable Provincial or State legislation enacted after independence. We are not here concerned with Provincial or State legislation, because that would be only of local application. But so far as Central legislation is concerned, neither the Part B States Laws Act nor any other Central Act has expressly extended the Interest Act, 1839, to any area in a Part B State.
Therefore, the position seems to be that the local extent of the Interest Act remains unaffected by constitutional changes that have taken place as a result of independence, so far as areas previously included in Part B States are concerned. As the Act does not have an extent clause, the position in this regard has to be ascertained from a study of the various Central Acts pertaining to the extension of existing laws to the areas of Part B States, and as already stated that study yields a negative result.
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