Court : Delhi
..... of interest, was perverse and the arbitral tribunal s approach adopted was not judicious. from 26% p.a.20. he also contended that in terms of section 3 of the usurious loans act, 1918, the court had to reach the conclusion that the rate of interest was excessive and the transaction was unfair. the excessive rate of interest of around 49% (annualised) clearly indicated ..... and the decision of the division bench in morepen laboratories ltd. & ors. v. morgan securities and credits pvt. ltd.:2008. (105) drj408and rejected the contention that the loan transactions fell foul of the usurious loans act, 1918. this court finds no infirmity with the aforesaid view.29. it is also necessary to bear in mind that the transactions between the parties was a commercial transaction ..... that the ingredients of section 3 of the usurious loans act, 1918 were fully satisfied. he also urged that the charging of exorbitant rate of interest was also hit by section 23 of the indian contract ..... on behalf of the society/guarantors contended that the rate of interest of 26% p.a. flat was excessive, harsh, burdensome and usurious and the arbitral tribunal had grossly erred in not accepting the same. he submitted that the loan agreements between the parties for charging such interest was void ab initio. mr mata, the society/guarantors also supplemented the aforesaid contentions .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : 2002(5)ALD283; 2002(4)ALT580
..... supreme court held that section 21 a curtailed the power of the court to reopen the question of rate of interest on the ground of its being excessive qua the usurious loan act, 1918 or any other law related to indebtedness in any state but had no application nor was the provision intended to expressly override the provisions of the cpc. the court held ..... the discretionary power given to the courts under order xxxiv rule 11 cpc is an independent power that is traceable neither to section 74 of the contract act nor to any power in the usurious loans act, 1918, nor to any state statute permitting a court to scale down the contractual rate of interest. it needs, however, be noticed that the decision in veerappa's ..... the amendments, including state co-operative banks have been brought within the regulatory framework of the act and encompassed within the definition 'banking company'.29. section 21-a incorporated into the act by act 1994 with effect from 15-2-1994, enacts that notwithstanding anything contained in the usurious loans act, 1918 or any other law relating to indebtedness in force in any state, the transaction between ..... the court cannot sit in the judgment by reopening the excessive rate of interest agreed to between the parties under the term loan, still the power of court is neither taken away nor the provisions under the banking regulation act overwrite the discretion vested in the court with regards to the rate of interest chargeable during pendency of the suit and till .....Tag this Judgment!
Court : Kolkata
Reported in : 107Ind.Cas.742
..... for the debt.2. the next point argued on behalf of the appellant is that he comes within sub-section (4) of section 3 of the usurious loans act, 1918, inasmuch as the plaintiff was a bona fide transferee from the original mortgagees. to assert such a proposition seems to be a mere effrontery. to say ..... 1. this is one of the most preposterous eases which shows that it was absolutely necessary to enact something in the nature of the usurious loans act, 1918. in this case the principal defendants borrowed rs. 400 on mortgage of properties which admittedly are very valuable. the interest charged was rs ..... if that is so nothing can be more deplorable than the fact asserted, and in every such case the courts would be justified in rigorously applying the usurious loans act in that part of the country, whenever such a course is justified. the evidence, however, does not satisfy us that that is the usual rate ..... of the country, for mortgage-bonds, the pro forma defendants who were the original mortgagees are, no doubt, very hard money-lenders and they exacted usurious rates of interest in other cases as they have proved themselves. the courts ought to be alert in allowing them interest in cases which are brought ..... before the court when usurious rates of interest are claimed by them. we have nothing to add to the judgment of the subordinate judge in this case except to point .....Tag this Judgment!
Court : Karnataka
Reported in : ILR1988KAR20
..... gopala menon and others, : 1scr721 the supreme court was concerned with the transactions of the year 1936 and 1938. considering the case under the provisions of the madras usurious loans act, 1918 (central act), the court in para 9 and 11 of the judgment observed thus:'there can be no dispute that interest that payable at the rate of 10 per cent compoundable annually ..... in girwar prasad narain singh v. ganeshlal saraogi 'the following observations therein were relied upon :' in order to be entitled to the benefit of the usurious loans act 1918, the appellant must establish (1) that the interest payable on the loan is excessive ; and (2) that the transaction was, as between the parties thereto, substantially unfair.'the aforesaid decision of the federal court was rendered ..... mortgage debt in question is binding on defendants 2 and 3?4) whether the suit is barred by time?5) whether the transactions in question attract the provisions of mysore usurious loans act 1923?point no. 1:4. the plaintiff is the assignee of the two mortgage deeds in question produced as exs. p-1 and p-3. the original mortgagee was ..... the mortgage transactions in question fall within the ambit of the definition of the expression 'loan' as defined in the mysore usurious loans act, 1923 (hereinafter referred to as 'mysore act ix of 1923'). according to sub-section (2) of section 2 of the mysore act ix of 1923, 'loan' means a loan whether of money or in kind and includes any transaction which is, in the opinion .....Tag this Judgment!
Court : Allahabad
Reported in : AIR1936All611
..... interest in this case without affecting a decree tent jurisdiction, and that being so we cannot exercise the powers given by section 3, usurious loans act, 1918. as the case for the reasons given does not fall within section 3, usurious loans act, 1918, the appellant can only obtain a reduction of interest if he establishes that his case falls within any of the provisions of the contract ..... has been contended on behalf of the appellant that this court has power to reduce the contractual rates of interest, because this case falls within the provisions of section 3, usurious loans act, 1918. that section does allow the courts to interfere in a number of cases where the interest claimed is excessive, but in our view the appellant cannot claim the advantage of ..... act. it has not been contended that these are penal rates of interest within the meaning of section 74, contract act and that being so the appellant can only succeed ..... council in raghunath prasad sahu v. sarju prasad sahu 1924 3 pat 279. their lordships held in that case that although a mortgage for ample security provides for excessive and usurious interest, no presumption arises that it was induced by undue influence in the absence of proof by the mortgagor that the mortgagee was in a position to dominate his will .....Tag this Judgment!
Court : Mumbai
Reported in : (1935)37BOMLR800
..... of both the lower courts, that the charge of compound interest at twelve per cent, was not excessive or otherwise open to challenge under the usurious loans act, 1918.12. in their lordships' opinion it is not open to the appellants to go behind the concurrent findings in the case, and the appeal ..... lower courts have also found that the charge of twelve per cent, compound interest is not excessive nor the transaction unfair within the meaning of the usurious loans act, 1918.9. mr. degruyther for the appellants has contended that there are not concurrent findings of fact which cannot be questioned on an appeal to his ..... that influence to get them to consent to unfair terms which they proceeded to set out. they also claimed a reduction of interest under the usurious loans act, 1918, on the ground that the interest was excessive or that as between the parties the transaction was unfair.3. both the courts below found that ..... ' case was false. as early as august 1922 they had applied to the plaintiff to whom they were already heavily indebted for a further loan. when their properties were sold in execution of a decree obtained by other creditors in january 1923, and they had thirty days ending on ..... for the deposit in court of the purchase money and the compensation money payable to the auction-purchasers, the plaintiff refused to give them a loan except on the terms that all the defendants should execute a mortgage bond bearing compound interest at twelve per cent, and including, not only .....Tag this Judgment!
Court : Chennai
Reported in : 85CompCas776(Mad); (1992)IIMLJ15
..... case of excessive rate of interest claimed by a nationalised bank and this court should call in aid the provisions of the usurious loans act, 1918, to mitigate the rigour of the loan transaction. our difficulty, however, in taking any aid from the said act is created on account of a bench decision of this court in the case of indian bank v. v.a. balasubramania ..... principle declared therein to the effect that the directives of the reserve bank would constitute a special circumstance within the scope of explanation i to section 3(1) of the usurious loans act. in this background, an earnest appeal was made by learned counsel for the appellants that though this bench is bound by the earlier decision of this court, we may consider ..... other words, the provisions of the usurious loans act do not in any manner control or regulate the charging of rates of interest, but are intended merely to afford relief from a claim for excessive interest in cases where ..... has reason to believe that a particular transaction between the parties is substantially unfair. no particular rate of interest, as reasonable interest or excessive interest, has been prescribed in the usurious loans act and the reasonableness or otherwise of the rate of interest in any given case has to be decided and determined in the light of the statutory provisions contained therein. in .....Tag this Judgment!
Court : Chennai
..... date of suit till the date of decree would meet the ends of justice.21. section 3 of 'the interest act' and 'the usurious loans act, 1918' are re-produced hereunder.sec.3 of the interest act. power of court to allow interest (1) in any proceedings for the recovery of any debt or damages or in ..... ) notwithstanding anything in the usury laws repeal act 1855 where in any suit to which this act applies whether heard ex parte or otherwise the court has reason to believe - (a) that the ..... defined in the negotiable instruments act, 1881 (26 of 1881); or (ii) the provisions of rule 2 of order ii of the first schedule to the code of civil procedure, 1908(5 of 1908);(c) shall empower the court to award interest upon interest.sec.3 of the usurious loans act, 1918 re-opening of transaction (1 ..... ltd.,rep.by its managing director and another.24. as such, if it is found that in a contract, if the interest rate is unconscionable and usurious, the court court has got the power to interfere. wherefore, i would like to reduce the interest rate from 25% to 18% from the date ..... and whether pendente lite interest awarded at the rate of 18% p.a. also was justified even though there was no reference in the records that the loan transaction was for commercial purpose?(iv) whether there is any perversity or illegality in the judgement and decree of the trail court?11. points (i) .....Tag this Judgment!
Court : Privy Council
..... of both the lower courts, that the charge of compound interest at 12 per cent was not excessive or otherwise open to challenge under the usurious loans act, 1918. in their lordships' opinion it is not open to the appellants to go behind the concurrent findings in the case, and the appeal therefore ..... lower courts have also found that the charge of twelve per cent compound interest is not excessive nor the transaction unfair within the meaning of the usurious loans act, 1918. mr. de gruyther has contended that there are not concurrent findings of fact which cannot be questioned on an appeal to his majesty in council ..... of that influence to get them to consent to unfair terms which they proceeded to set out. they also claimed a reduction of interest under the usurious loans act, 1918, on the ground that the interest was excessive or that as between the parties the transaction was unfair. both the courts below found that the ..... ' case was false. as early as august 1922 they had applied to the plaintiff to whom they were already heavily indebted for a further loan. when their properties were sold in execution of a decree obtained by other creditors in january 1923, and they had thirty days ending on ..... for the deposit in court of the purchase money and the compensation money payable to the auction purchasers, the plaintiff refused to give them a loan except on the terms that all the defendants should execute a mortgage bond bearing compound interest at twelve pet cent, and including, not only .....Tag this Judgment!
Court : Competition Commission of India CCI
..... of interest for providing automobile finance services. the grievance of applicants is that opposites parties were contravening the provisions of the ap (telengana area) money lenders act, 1349 fasli and the usurious loans act, 1918. this does not raise any competition concern and remedy for the same lies elsewhere. filing of writ petition by opposite party 1 before andhra pradesh high ..... money lender ??s license to conduct money lending business, but the interest being charged by them was bound to be regulated as per the provisions contained in the usurious loans act, 1918. 5. it was alleged that in case of seizure of the vehicle of the defaulter,opposite parties unilaterally calculated the outstanding amount due and the financier ??s goons ..... that an individual or partnership firm conducting money lending business had to mandatorily obtain money lender ??s license under the said act.further, the opposite parties were also acting in violation of the provisions contained in the usurious loans act, 1918 which regulated the charging of interest by the opposite parties. 4. it was submitted in the information that the opposite ..... carry on their business in compliance with the provisions contained in the a.p (t.a) money lenders act, 1349; b) to pass an order directing the opposite parties to charge reasonable interest as per the provisions contained in the usurious loan act, 1918; c) to pass an order restraining the opposite party from seizing or, snatching the hypothecated vehicle from .....Tag this Judgment!