Court : Mumbai
Reported in : (1919)21BOMLR1126; 58Ind.Cas.433
..... for six installments from january to june 1919.3. the defendant does not appear but, though the suit is ex parte, the court has, under section 3 (1) of the usurious loans act, 1918, jurisdiction to consider the merits of the transactions.4. the bond professes to charge interest at 2 per cent. per mensem but the scheme of the bond is that the ..... installments. as regards the six installments in suit there is no occasion to disturb the provision for repayment of the principal by installments of rs.150 per mensem.8. the loan was made on personal security and i may take it that the rate of 2 per cent. per mensem was reasonable in view of the risk incurred. but the progressive ..... at the end of the 33rd and 34th months work out to the preposterous rates of 50 per cent. per mensem and 200 per cent. per mensem.5. under the act, the court may reopen the transaction and relieve the debtor of all liability in respect of excessive interest, if two conditions are fulfilled. these are that the court has reason ..... pratt, j.1. in this suit, the plaintiff', a poona money lender, seeks to recover on a bond executed by the defendant on the 7th of september 1918. the consideration of the bond is a cash advance of rs. 5000 and the obligor agrees to repay rs. 8400, i. e., rs. 5000 principal and rs. 3400 interest. the .....Tag this Judgment!
Court : Kolkata
Reported in : AIR1925Cal392,82Ind.Cas.830
..... no little training to discriminate and appreciate at their true value.' this observation appears to have been borne in mind in the usurious loans act, 1918. while keeping in view the principle of the english act it has rendered the application of the principle much simpler by substituting the words ' substantially unfair' for the words 'harsh and ..... the opinion that it would not be right to do so.6. the usurious loans act, 1918, applies to the transaction. section 3 (1) of that act provides that notwithstanding anything in the usury law repeal act, 1855, where in any suit to which the act applies, whether heard ex parte or otherwise the court has reason to believe ..... . 100 and interest at the rate of 6 1/4 per cent per mensem. defendant repudiated the execution of the khata entry and denied the loan.2. the entry in the khata shows a stipulation to pay interest at 6 1/4 per cent without mentioning whether it was per mensem or ..... the decree of the learned munsif and send back the case to him to admit relevant evidence for the purpose of considering the provisions of the act and dispose of the suit in accordance with law. i am of opinion that the dishonest defence set up by the defendant led. the court ..... of its own motion, whether it has been raised by the defence or not. the section is founded upon section 1 of the english money lender's act in samuel v. newbould (1906) a.c. 461 lord macnaghten observed: ''what an intolerable strain would be thrown upon inferior courts, unfamiliar with the .....Tag this Judgment!
Court : Mumbai
Reported in : AIR1926Bom65; (1925)27BOMLR1462
..... . there cannot, therefore, be any question of undue influence or misrepresentation, and the trial judge was right in his decision on this point.3. the judge then referred to the usurious loans act x of 1918 and held that the a-st could not apply where the suit is brought by a debtor. under section 2 (3) a suit to which the ..... the court could give relief against the transaction as being harsh and oppressive under sections 16, 19a and 74 of the indian contract act and the usurious loans act x of 1918. it is quite clear that the provisions of the indian contract act would be of no assistance whatever to the plaintiffs. they wanted money for their business and expected to make a good profit ..... .the security in the present case was ample. the interest was exorbitant. it was excessive within the meaning of the term as explained in section 3 (2) (a) of the usurious loans act). i think it proper in the circumstances to reduce it to one-third of that specified in the promissory note, that is to say 25 per cent per annum.7 ..... out of the business when assisted by the loan from the defendant. the first plaintiff had to admit that she consented freely and willingly to .....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 : 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 : 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 : 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 : Chennai
Reported in : AIR1937Mad769; 173Ind.Cas.244
..... has set out at length and re. opened the contract, purporting to act under the usurious loans act 1918, and awarded interest at a uniform rate of 12 per cent. it is objected that the usurious loans act applies only to suits on loans contracted subsequent to the act and this mortgage was in 1914. we think that this objection must ..... to be arrived at by calculating interest at 12 per cent. and not at the penal rate stipulated in the bond since the latter was penal, usurious and excessive; (3) that the amount so found is to be reduced by the profits of the land from 16th october 1927 at the rate of ..... awarded by the learned subordinate judge? we think both questions should be answered in the affirmative. the learned subordinate judge held that the security for the loan--which was only rs. 3,000--was excellent and that the borrowers were induced to consent to the high rate of interest because they were hard ..... and poundage was rs. 6,660. it is contended on the strength of certain observations of the learned judges in muthammal v. razu pillai air 1918 mad 103, that when this is the case the purchaser is not accountable for the profits accruing during the time he is in possession. these observations ..... the period they have been in possession of the mortgaged property.5. to the same effect is the decision in muthammal v. razu pillai air 1918 mad 103, although we shall have occasion presently to refer to some of the observations in that judgment which seem to be inconsistent with the general .....Tag this Judgment!
Court : Allahabad
Reported in : AIR1937All792
..... suit was one for declaration. sub-section (2) reads:in such suit the court shall follow the provisions of ch. 4 of this act and the provisions of the usurious loans act, 1918. it shall, after taking necessary accounts, declare the amount which is still payable by the plaintiff to the defendant, and shall on ..... as the suit was for a declaration it should be valued at at least rs. 6,000, because that was the original amount of the loan. he therefore held that he had no jurisdiction to entertain the suit and returned the plaint to the plaintiffs for presentation to the proper court.4 ..... amended rules provides:the following rules have been framed with the previous sanction of the local government, under the powers conferred by section 9, suits valuation act, 1887, and all other powers in that behalf, for determining the value of the subject matter of certain classes of suits for the purpose of ..... 0 per cent, per mensem. the plaintiffs were agriculturists and were consequently entitled to a reduction of interest under the provisions of the agriculturists' relief act. the contract rate of interest had been paid by the plaintiffs from the date of the mortgage and they brought the suit out of which this ..... munsif of bareilly rejecting a plaint which had been filed in a suit brought by the plain, tiffs under section 33, united provinces agriculturists relief act. first appeal from order no. 175 of 1936 is a plaintiffs' first appeal from the order of the learned civil judge of bareilly rejecting a .....Tag this Judgment!
Court : Allahabad
Reported in : AIR1938All76; 173Ind.Cas.913
..... and of money paid by him to such person, (2) in such suit the court shall follow the provisions of ch. 4 of this act and the provisions of the usurious loans act, 1918. it shall, after taking necessary accounts, declare the amount which is still payable by the plaintiff to the defendant, and shall on the application ..... would thus appear that the suit had not proceeded very far; and it had only been pending for three weeks. in the circumstance the court below acted properly in returning the plaint for presentation to the proper court. for the reasons given above we dismiss this appeal; but having regard to the fact ..... of a bench of this court in anis begam v. shyam sunder lal : air1937all792 . it was there held that suits under section 33, agriculturists' belief act, are suits for an account of money and that the valuation should be according to rule 28 (3). this means that the valuation of such a suit ..... 2. it was upon this rule that the court below based its order. as we have already said, the suit was under section 33, agriculturists' belief act. that section provides that:33.(1) an agriculturist debtor may sue for an account of money lent or advanced to, or paid for, him by any ..... 17th december 1935, this court with the previous sanction of the local government framed certain rules under the powers conferred upon it by section 9, suits valuation act. rule 28(3) reads as follows:suits in which the plaintiff in the plaint asks for accounts only, not being suits to recover the amount which .....Tag this Judgment!