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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice P. VELMURUGAN
B. Vinayak Nilesh – Appellant
Versus
Rakesh Harlalka – Respondent
JUDGMENT :
P. VELMURUGAN, J.
The Plaintiffs have come forward with this Commercial Division Suit praying for the following reliefs:-
(a) To grant a decree for declaration that the defendants are "money lenders" as defined under Section 2 (8) of Tamil Nadu Money Lenders Act, 1957 and are entitled to charge only upto 9% per annum simple interest on the money borrowed by the plaintiffs under Simple Mortgage Deed, dated 16.04.2012.
(b) To grant a decree for redemption of mortgage against the defendants 1 to 3, with consequential direction to return all the original title deeds of Schedule 'A' property, viz., Original Settlement Deed dated 15.12.2008 bearing document No.2446/2008 along with patta and revenue records as well as all the cheques mentioned in the Schedule 'B' issued by the first plaintiff.
(c) To direct the defendants jointly and severally to pay the plaintiffs a sum of Rs.1,91,67,279/- along with interest at the rate of 9% per annum from this date to till realisation for the excess amount paid by the first plaintiff on the mortgage deed dated 16.04.2012.
(d) to grant a decree for declaration that Mortgage Deed dated 13.03.2020, registered as Document No. 722 of 2020 at Sub-Regis
Plaintiffs are bound by the contractual interest of 27% per annum as per mortgage deeds and have not proven excess payments or that defendants are money lenders under the Tamil Nadu Money Lenders Act....
The court affirmed that the maximum interest for secured loans is 9% per annum under Tamil Nadu law, and the plaintiffs failed to prove their claims of excessive interest charges.
The Court established that the plaintiffs, as financiers, were entitled to recover the principal sum and interest from the defendants, and the interest rate was limited to 9% per annum as per the Mon....
A usufructuary mortgage must be in writing and registered to be valid; failure to establish such a mortgage negates the right to seek redemption.
The main legal point established in the judgment is that the transactions between the parties were purely commercial and not covered under the Money Lenders Act, leading to the quashing of the procee....
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