Court : Kerala
Reported in : AIR1958Ker126
..... contravene any statutory provision in any all-india enactment e.g., the usurious loans act, v. of 1918' or the contract act ix of 1872. secondly, there could not be said to be a breach of even the madras agriculturists' relief act, unless that act governed the transaction in suit in ext. al case. on this matter ..... governed by the laws of the madras presidency and therefore the liability under the mortgage could be scaled down under the madras agriculturists' relief act the principle of the privy council case was followed, that when a state law had defined the extent of an obligation to pay a ..... , according to learned counsel the court below was possessed of the jurisdiction and was also under a duty, to apply section 13 of the act when it disposed o the suit before it. for the foreign judgment here sought to be enforced was being questioned as regards its conclusiveness, ..... the later judgment, (2) the defendant being admittedly an agriculturist was entitled to relief by way of scaling down under the madras agriculturists' relief act, 1938. the court below, in the result, allowed the suit except to the small extent of the claim for future interest on the costs ..... , the principle of private international law is clear. for as staled in dicey's conflict of laws, 6th edn. at page 708, rule 157,'the liability to pay interest, and the rate of interest payable in respect of a debt, e.g. in respect of a loan .....Tag this Judgment!
Court : Kerala
Reported in : AIR1962Ker267
..... .'the learned author then adverts to legislation enacted to control money-lenders. he adverts to the english money lenders act, 1900, the indian usurious loans act, 1918 -- act x/1918, the bombay money lenders act which came into force in 1949, and the bengal money lenders act 1933.58. dealing with cheques, the learned author again observes at page 6:'greater attention began to he paid ..... or over land, land tenures, including the relation of landlord and tenant, and the collection of rents; transfer, alienation and devolution of agricultural land; land improvement and agricultural loans; colonisation; couris of wards encumbered and attached estates; treasure trove.'91. the question was as to whether the provincial legislature can legislate with respect to remission of rents under ..... to control money-lending business under this act and therefore according to him 'ho proper method of legislating en such matters is ..... -- central act x/1949 and includes the state bank of india.again, sub-section (7) of section 2 defines 'money-lender' as a person whose main or subsidiary occupation is the business of advancing and realising loans, but excludes a bank or a co-operative society. mr. t. s. krishnamoorthy ayyar further urged that various restrictions havc been made .....Tag this Judgment!
Court : Kerala
Reported in : AIR1975Ker169
..... the fact that he conducts agricultural operations on a commercial scale or that he owns a rice mill will not disentitle him from claiming relief under the usurious loans act and getting over the liability to pay compound interest. see venkanna v. muhammad rowthar, air 1944 mad 105 and rajayya v. ramachandra rao, air ..... . even assuming that exts. a-13 and a-14 amount to settlement of accounts and admission of the balance due, section 3 of the usurious loans act empowers the court to reopen transactions and relieve the debtor of the liability to pay excessive interest.16. the aforesaid discussion makes it clear that ..... agricultural lands and was attending to agricultural operations. there is, therefore, no doubt that he is an agriculturist entitled to relief under the usurious loans act as amended by madras act 8 of 1937.4. the stipulation in ext. a-1 is that the first respondent should pay and obtain receipt for the interest ..... by the first respondent. those relevant for this appeal are:(1) that the first respondent being an agriculturist was entitled to relief under the usurious loans act as amended by act 8 of 1937 (madras) and was not bound to pay compound interest or interest at the rate of 12% and; (2) that ..... england. the case inland revenue commrs. v. holder, (1931 (2) kb 81) arose in connection with the income-tax act. under section 36 of the income-tax act of 1918, a claim could be made for repayment of income-tax upon sums paid to banks in respect of interest out of taxed profits .....Tag this Judgment!
Court : Kerala
Reported in : 164ITR737(Ker)
..... air 1969 sc 751, the supreme court had to consider the effect of the expression 'after the commencement of this act' occurring in section 2(3) of the usurious loans act, 1918. the act was extended to the bangalore civil and military station with effect from april 1, 1937, by the civil and military station ..... of bangalore (application of laws) order, 1937. whether the act which had come into force in other areas from 1918 onwards, can have application ..... was held that the legal representative of a deceased assessee, by virtue of the statutory fiction in section 24b(1) of the indian income-tax act, 1922, shall continue to be an assessee even after an assessment is made and the fiction continues to attract the penalty proceedings if the legal ..... such local authority were the government. (2) the appropriate government may, by notification in the official gazette, direct that the provisions of this act shall apply to any provident fund established for the benefit of the employees of any of the institutions specified in the schedule, or of any ..... in respect of a mortgage executed in the area of the bangalore civil and military station in 1933 was the question that came up for decision before the supreme court. the commencement of the act with .....Tag this Judgment!
Court : Kerala
Reported in : AIR1989Ker239; 70CompCas284(Ker)
..... .3. the defendant admitted the execution of the promissory note. the only defence to the suit is that no compound interest is leviable by virtue of the provisions of the usurious loans act, 1918. the court below, following the decision of a division bench of this court in state bank of travancore v. c. t. george, 1975 ker lt 416 : (air 1975 kerala 169 ..... usurious loans act, 1918 (central act x of 1918) the government of kerala hereby direct that the said act shall not apply to the loans given by all categories of banks.'this notification, according to the court below, will not apply to past transactions and those transactions ..... % per annum thereafter.5. subsequent to the decision of the division bench in george's case the government of kerala had issued a notification under section 1(3) of the usurious loans act. 1918 and published the same in the gazette dt. 22-5-1979. the notification reads ;'in exercise of the powers conferred by sub-section (3) of section 1 of the ..... bank has come up in appeal.4. the division bench in george's case has held that the usurious loans act, 1918 as amended by the madras act 8/1937 applies to loans advanced by banks to agriculturists in the malabar area and under section 3 of the act there is a presumption that the transaction is substantially unfair if the interest is excessive. there is a .....Tag this Judgment!
Court : Kerala
Reported in : 71CompCas652(Ker)
..... .5% initially and to 12.5% finally, that the contract stipulates payment of compound interest with half-yearly rests and these stipulations are unconscionable and cannot be acted upon under the provisions of the usurious loans act, 1918. learned counsel also placed reliance on the decision in state bank of travancore v. c. t. george, air 1975 ker 169 ;  klt 416.3. exhibit a ..... financial corporation, air 1980 delhi 48 and man singh v. punjab financial corporation, air 1985 p & h 149. since section 3 of the usurious loans act, 1918, applies only to suits and an application under section 31(1) of the act is not a suit but something akin to an application in execution proceedings and the order passed thereunder is not a decree, we hold ..... in accordance with the terms of the contract between the parties.4. it is true, as pointed out by learned counsel for the corporation that the contention based on the usurious loans act was not specifically raised in the counter filed before the district court, but we find that such a contention was urged in the course of arguments before the district court ..... . the memorandum of appeal, though it makes no reference to the usurious loans act, refers to the excessive nature of the interest and compound interest. therefore, we permit the debtors to raise this contention before us.5. section 3 of the .....Tag this Judgment!
Court : Kerala
Reported in : AIR1991Ker118; 68CompCas500(Ker)
..... annum.2. the learned sub-judge held that notification of the government of kerala dated 22-5-1979 is incapable of debarring the defendants from claiming the benefits of the usurious loans act 1918 in respect of transaction which commenced in 1973. the above conclusion is not sustainable in view of the division bench ruling of this court in canara bank v. mohammed, air ..... a decree for payment of money interest may be allowed. these are (1) interest prior to suit, (2) interest pendente lite and (3) future interest. prior to the amendment by act 104 of 1976 court could grant interest at 6% per annum on the principal sum in all cases. the lower rate of interest was exploited by several scheming judgment debtors .....Tag this Judgment!
Court : Kerala
Reported in : AIR1992Ker329
..... rates up to the 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 that case the supreme court awrded simple interest at 6% per annum on the principal adjudged from date of suit till date of preliminary decree and also at the ..... v. e. saleh mohamed - interest was payable at the rate of one percent per mensem under the mortgage deeds. the supreme court observed that the fair interest payable on the loan would be at the rate of 9% per annum and interest must be calculated at this rate on the principal amount. a further direction was given that interest will be ..... be determined by the court. an amendment similar to the one introduced by this notification was in force in this state before the amendment of the code by the amendment act of 1976. the amendment brought into effect by the notification came up for consideration in state bank of travancore v. may c. george 1976 klt 205 : (air 1977 ker 8 .....Tag this Judgment!
Court : Kerala
Reported in : AIR1999Ker421; 101CompCas197(Ker)
..... : '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 ..... with regard to banking. the enactment of section 21a was clearly within the domain of the parliament. the said section applies to all types of loans which are granted by a banking company whether to an agriculturist or a non-agriculturist and therefore reference by the high court to entry 30 of ..... of the country and the impact that interest rates would have on the economy, fixes the minimum and the maximum interest rates that banks can charge on loans/advances the same cannot be termed to be unreasonable or excessive and would, in any case, amount to a 'special circumstance' within the meaning of ..... excess interest and give relief to the party, notwithstanding the provisions of section 21a, if it is proved that the interest charged by the bank of loan advanced is not in conformity with the rate prescribed by the reserve bank of india? 7. this court also followed the above dictum laid down by ..... a party whenever any bank claims anything in violation of the circulars issued under section 21 of the act. 8. in this case the bank contended that the loan advanced to the appellant is a short term agricultural loan exceeding rs. 25,000/- as provided in item 3 of ext. a12 circular and as such .....Tag this Judgment!
Court : Kerala
Reported in : 108CompCas277(Ker)
..... '21a. rates 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 ..... air 1999 sc 896, the apex court had occasion to go into the question whether section 21a of the banking regulation act would apply to all types of loans. it was held that it would apply whether to an agriculturist or a non-agriculturist and that normally when a security ..... is actually a nullity in so far interest had been allowed at an inadmissible rate and that the contract based on which the bank granted loan itself was unconscionable. according to counsel, these aspects should have been taken into account by the execution court. 5. according to learned counsel ..... petitioner contended before the execution court that the decree holder-bank has calculated interest at 19.5 per cent. per annum on an agricultural loan availed of by the petitioner; that interest at such rate is inadmissible and that if interest is correctly calculated, it could be seen ..... loan is an agricultural loan, probably the crediting of interest with quarterly rests may not be justified under the aforesaid decision ; but even so that is a matter which can be raised only through appropriate pleadings at the relevant (pre-decree) stage or in appropriate review/correction petition. 11. section 21a of the banking regulation act .....Tag this Judgment!