Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Interest Banking Regulation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Banking Regulation Act (10 of 1949) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Banking Regulation Act, 1949: Section 21-A (as inserted in 1984) - Provided that banking transaction not to be reopened by any court on ground that interest rate of such transaction is excessive - Preliminary decree was passed by trial court in a suit for recovery of money and upheld in appeal by District Court -However, High Court allowed second appeal on the ground that S.21-A was ultra vires - Held: S.21-A deals with question of rate of interest charged by a banking company, whether to an agriculturist or non-agriculturist - Therefore, reference to Entry 30 of List II dealing with relief of agriculture indebtedness is of no consequence - Hence, S.21-A is validly enacted and High Court erred in holding that Parliament has no jurisdiction to enact S.21- A - Constitution of India, 1950, Arts 245 and 246, Sch. VII List I, Entry 45 & List II Entry 30. Banking company - Interest - Charging of - Rate of - Mortgage - Held : Rate of interest is a matter of contract between the parties - Hence, court cannot interfere in respect of an agreement stipulating charging of compound interest in respect of the amount advanced against a mortgage - Usurious Loans Act, 1918. |
Judge | Honble Mr. Justice B.N. Kirpal |
Neutral Citation | 1999 INSC 20 |
Petitioner | State Bank Of India |
Respondent | Yasangi Venkateswara Rao |
SCR | [1999] 1 S.C.R. 213 |
Judgement Date | 1999-01-21 |
Case Number | 4607 |
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