Court : Andhra Pradesh
Reported in : 1999(3)ALT719
..... its debtors. the said provision reads thus:'21-a. rate of interest charged by banking companies not to be subject to scrutiny by courts:- notwithstanding anything contained in the usurious loans act, 1918 (10 of 1918), or any other law relating to indebtedness in force in any state, a transaction between a banking company and its debtor shall not be reopened by any court on ..... the decisions in andhra bank v. b. narasamma 1987 (1) alt 447 = 1986 (2) aplj 165 and m. satyanarayana v. andhra bank (2 supra). as regards the applicability of the usurious loans act, 1918, the earlier judgments in yogendranath raj v. state bank of india 1987(1) alt 316, central bank of india v. popuri sarangaiah and ors., : 1991(1)alt455 ; bank of madhurai ..... the above provision and the decisional law referred to above, the principles which ultimately emerge are:(1) section 21-a of the banking regulation act, 1949 is constitutionally valid;(2) the debt relief legislations like the usurious loans act, 1918 or the act no. 4 of 1938 does not apply to the banking transactions;(3) the interest charged in pursuance of a mortgage transaction is valid ..... ;(4) section 21-a of the banking regulation act, 1949 applies to all transactions prior to or after its coming into force;(5) section 21- .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : 2000(3)ALD134; 2000(2)ALT511
..... order xxxiv, rule 11 which begins with a non-obstance clause and the effect of the non-obstante clause in section 21-a is only to override the central act, namely, the usurious loans act, 1918 and any other 'law relating to indebtedness in force in any state'. therefore, the intention of the parliament in enacting section 21-a is not to override the ..... code of civil procedure among the central statutes. further the civil procedure code, 1908 is not a law relating to indebtedness in force in any state. section 21-a overrides only the usurious loans act, 1918 and other laws relating to indebtedness in force in any state. therefore, order xxxiv, rule 11 of cpc prevails over section 21-a and consequently the courts are competent ..... suit till the date of realisation. according to the learned judges, 'the discretionary power given to the courts is neither traceable to section 74 of the contract act nor to any power in the usurious loans act, 1918 nor to any state statutes permitting a court to scale down contractual rates of interest.' referring to the judgment in d.s. gowda's case(supra), ..... decision was whether in view of the insertion of section 21-a in the banking regulations act by banking loans (amendment) act, 1983 (act 1 of 1984), whether the courts are precluded from subjecting transactions entered into between the banksand borrowers from scrutiny under the provisions of the usurious loans act, 1918 or any other similar state law, with a view to giving relief thereunder, and, if .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : 72CompCas325(AP)
..... of the learned subordinate judge, vijayawada, in o.s. no. 236 of 1979, raises the question as to the applicability of the proviso to section 3 of the usurious loans act, 1918, as amended by act viii of 1937. 2. the parties in this appeal are referred to in their original character as they appeared in the court below. the first defendant borrowed a sum ..... by the court below. sri. t.s. harinath, learned counsel for the plaintiff-appellant, contends that the statutory presumption under the proviso to section 3 of the usurious loans act, 1918, hereinafter referred to as 'the act,' is not attracted to the case on hand and, even if that presumption is attracted, the benefit should be confined to the first defendant only and the other ..... take away the benefit already granted by courts before that provision came into force. the division bench held (page 426) : 'having regard to the object and the purpose underlying the usurious loans act and the madras amendment thereto, we are of the opinion that the court should be inclined to sustain and continue the said relief, unless that statute says to the contrary ..... . the second defendant filed a written statement specifically contending that the interest charged with quarterly rests was usurious and 'opposed to public policy'. he also pleaded that all the defendants are agriculturists and 'they are entitled to the benefits of act iv of 1938 and act vii of 1977'. 4. the third defendant in his written statement stated that he is an agriculturist .....Tag this Judgment!
Court : Punjab and Haryana
Reported in : (1997)117PLR353
..... declining the plaintiffs claim for interest at the rate of 2% per month has taken into consideration the provisions of the punjab relief of indebtedness act and the usurious loans act, 1918 as well as volume i, chapter 11 part-d of the rules and orders of punjab & haryana high court. a perusal of the aforesaid ..... the amount from the view point of the creditors. there has been amendment by the state of punjab in respect of section 3 of the usurious loans act, 1918. as per amended provision, court has to deem the interest to be excessive if it exceeds seven and a half per centum per annum simple ..... to the conclusion that interest stipulated in the instrument is excessive, it is within its authority to award interest at a lower rate. under the usurious loans act, 1918, term 'excessive' means when the court deems it so basing its assessment on risk involved in such a transaction i.e. chances of recovery ..... interest claimed by the plaintiff is at the rate of 24% per annum and in view of the provisions contained in the punjab relief of indebtedness act and the usurious loans act, interest beyond 12-1/2% per annum could not be granted by the court. the decision rendered by d.s. tewatia, j. (as ..... not granting the interest at the rate which was duly agreed between the parties. according to the counsel, as per section 79 of the negotiable instruments act, 1881, interest is to be calculated at the rate specified in the promissory note/receipt. thus, according to the counsel, decree of the court .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : AIR1985AP77
..... 1984). the provision is in the following terms:'21.a. rates of interest charged by banking companies not to be subject to scrutiny by courts.- notwithstanding anything contained in the usurious loans act, 1918, or any other law relating to indebtedness in force in any state, a transaction between a banking company and its debtor shall not be reopened by any court on the ..... this court the construction now urged by the bank is correct. 8. in order to examine these submissions it is necessary to notice the provisions of the usurious loans act 10 of 1918 (hereinafter called the central act) and its objects. the preamble of the said act reads as follows:'whereas it is expedient to give additional powers to courts to deal in certain cases with ..... that in view of the said provision that notwithstanding the above judgment, the transactions between a banking company and its debtors cannot be reopened in spite of the provisions of usurious loans act or many other law relating to indebtedness in force in any state. hence the question is whether this provision has the effect of making the provisions of the madras agriculturists ..... usurious loans of money or in kind.'section 3 which is a pivot of the central act empowers the court to reopen the transaction where the court has reason to believe .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : AIR2003AP454; 2003(5)ALT375
..... date of redemption in all circumstances even if there is no question of the rate being penal, excessive or substantially unfair within the meaning of the usurious loans act, 1918. in view of the principle laid down by the federal court in this decision we are of opinion that in the circumstances of the present ..... no capacity to advance so much of amount and the interest stipulated @ 24% compound interest is excessive, exorbitant, unconscionable and the same is hit by usurious loans act.5. on the strength of the pleadings, as many as six issues were settled. the plaintiff had examined himself as pw-1 and the attestor of ..... is per se excessive and the burden of establishing that interest is excessive lies on the debtor setting up the plea that the interest charged is usurious.13. it is pertinent to note that in the present case, no evidence was let in on behalf of the defendants and no doubt the ..... provisions of order 34 cpc, the granting of subsequent interest is within the discretion of the court irrespective of the fact whether it is penal or usurious and hence in any view of the matter, the interest has to be further reduced granting only 6% during the pendency of the litigation in ..... appellate court is definitely unsustainable. the learned counsel also with all vehemence had contended that the burden to prove whether the interest charged is penal or usurious in the facts and circumstances is on the respondent and he had not chosen to enter into the witness box at all and hence in such .....Tag this Judgment!
Court : Chennai
Reported in : I(2006)BC128; 125CompCas67(Mad); (2004)4MLJ53
..... by the plaintiff, prior to the filing of the suit and subsequent to the filing of the suit.17. section 21a of banking regulation act 1949 (as amended) reads:'notwithstanding anything contained in the usurious loans act, 1918 (10 of 1918), or any other law relating to indebtedness in force in any state, a transaction between a banking company and its debtor shall not be ..... for the respondent submits, that the court has no power, to reopen the settled account which includes interest, in view of section 21a of the banking regulation act, 1949 (as amended), that though the loan was advanced for agricultural purpose, the borrower had the benefit of commercial activities, by utilising the tractor and in this view, subsequent interest also could be ..... that in the principal sum adjudged on the date of the suit, the component of interest is disproportionate, with the component of principal sum, actually advanced. the very purpose of loan, as claimed in the plaint itself is to encourage the agriculturists, and to develop the agricultural industry, to meet the requirement of the nation. agriculturists of this nation, mainly ..... observed as follows, in sub para 6 of paragraph-55: 'agricultural borrowing are to be treated on a pedestal different from others. charging and capitalisation of interest on agricultural loans cannot be permitted in india except on annual or six monthly rests depending on the rotation of crops in the area to which the agriculturist borrowers belong'.the above observation .....Tag this Judgment!
Court : Mumbai
Reported in : 2009(111)BomLR4172
..... , any challenge with this regard, therefore, now is unsustainable.15. the defendant's case that the suit is barred under section 10 of the bombay money lenders act and based upon the transaction under usurious loans act, 1918, are also unacceptable being commercial transaction between the commercial minded person. the reliance of the defendant based upon the judgments in view of above admitted documents, are ..... of the written statement?5. what relief and order?7. issue no. 1:the defendant is a registered broker and proprietor of m/s. hiralal liladher. the plaintiff advanced various loan amount to the firm for vyaj badla transaction. there is no denial to the 'vyaj badla' account. when the defendant closed the transaction, balance of rs. 2,17,740/was ..... of m/s. hiralal liladhar.2. the plaintiff out of his saving lent and advanced to the defendant the amount as per the claims, as and by way of business loan. the defendant agreed to pay the interest at the varied rates from time to time. the defendant, as agreed, made part payment of interest and on closing of the financial ..... that it was not agreed the rate of interest and or not permitted to charge compound interest. therefore, the submission based upon section 34 of civil procedure code (cpc) and above two acts as referred, is also need to be rejected. the judgments so cited by the parties in view of above facts itself are distinct and distinguishable.14. the defendant himself agreed .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : 2008(4)ALD119; 2008(2)ALT102; IV(2008)BC408
..... as they are agriculturists within the meaning of andhra pradesh (andhra area) agriculturists relief act, 1938 (the 1938 act), they are entitled to benefits of that act and if not as agriculturists they are entitled to reduction of interest in view of the provisions of the usurious loans act, 1918 (the act). the trial court accepting the contention of the petitioners, by reducing the rate of ..... interest charged etc., drew an adverse inference against the first respondent and rightly reopened the transaction as the first respondent failed to produce any material with respect to the initial loan transaction, and reversed the judgment of the trial court by judgment dated 07.07.2006 allowing the appeal may be reviewed. the contention of the learned counsel for the ..... been impliedly over-ruled by a full bench in state bank of hyderabad v. advath sakru : air1994ap170 where it is held that section 21a of banking regulation act, 1949 (the 1949 act) does not make any distinction between an advance made for agricultural purpose or for commercial purpose and prohibits reopening of transaction between the banking company and its debtor ..... under the provisions of the act, there in fact are no grounds for review also.3. i find force in the contention of the learned counsel for the first respondent that this petition for review .....Tag this Judgment!
Court : Kolkata
Reported in : (1988)2CALLT281(HC),92CWN1092
..... aside the final decree passed in the suit and send the case back to the court below with a direction to dispose of the application under section 3 of the usurious loans act, 1918 in accordance with law on the materials on record and such further evidence as the parties may choose to adduce. we also direct the parties to appear before the trial ..... 'as preliminary decree has already been passed in the suit, the court can not do anything which affects the decree' as the proviso (11) to section 3(1) of the usurious loans act, 1918 mandates that 'the court shall not.... do anything which affects any decree of a court'. we are of opinion that the learned judge went wrong and arrived at an erroneous ..... the appeal is that the trial judge was wrong in making the preliminary decree final rejecting the defendant-appellant's application under section 3 of the usurious loans act, 1918 on the erroneous impression that the provisions of that act can not be invoked after the passage of the preliminary decree.2. the defendant-appellant attempted to resist the passing of the final decree by ..... wonded up in appeal, was still to be regarded as pending during the pendency of the appeal for the purpose of the usurious loans act, 1918, as amended by the punjab relief of indebtedness act, 1934. section 6 of the punjab act made the usurious loans act, as amended by section 5 of the punjab act, applicable to all suits pending on or instituted after the commencement of the punjab .....Tag this Judgment!