Principle: The doctrine of Pith and Substance examines the true nature and character of an enactment to determine legislative competence under Seventh Schedule.
Facts: State legislature enacts a law regulating money lenders and relieves agrarian debt, incidentally affecting promissory notes (Union List). Is the State law valid?

Answer and explanation

Correct answer: B. Yes, under pith and substance the law deals with money lending, a State List subject

  1. Step 1: Apply the doctrine of Pith and Substance (Prafulla Kumar Mukherjee v. Bank of Commerce).
  2. Step 2: Look at the true nature of the statute: it is enacted to regulate money lenders and provide agrarian relief (State List Entry 30).
  3. Step 3: An incidental encroachment on a Union List subject (promissory notes) does not invalidate the enactment if in pith and substance it falls within the State field.
Answer
Yes, under pith and substance the law deals with money lending, a State List subject.

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