AI Overview...
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Interest Rate in Money Suits - The permissible interest rate during the pendency of a money suit varies depending on statutory provisions and judicial interpretation. Courts often scrutinize interest charges to ensure they do not exceed legal limits or rates fixed by relevant laws IND_MAD00000563845, IND_MAD00000065064.
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Legal Limits and Statutory Framework - The Tamil Nadu Money Lenders Act, 1957, empowers the government to fix maximum interest rates, which should be aligned with current bank rates as determined by the Reserve Bank of India (RBI). Charging interest beyond these limits is considered excessive and unlawful IND_MAD00000065064.
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Court's Approach to Interest During Pending Suit - Courts have held that interest charged during the pendency of a suit should not be exorbitant or beyond the prescribed statutory limits. For example, in some cases, courts have decreed interest at rates like 11% per annum or 17%, considering the nature of the loan and prevailing bank rates N. Balan VS Devaki R. Nair - Kerala, UNITED BANK OF INDIA VS B. T. W. INDUSTRIES - Calcutta.
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Interest as per Bank Rates - The interpretation of 'bank interest' generally refers to the rates charged by commercial banks for advances, which courts often use as a benchmark to determine reasonable interest during litigation George VS Daniel - Kerala.
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Excessive Interest and Penalties - Some judgments have declared interest exceeding certain thresholds (e.g., 96% per month or rates above statutory limits) as excessive, leading courts to reduce or disallow such interest charges Arjun Singh VS Shanti Devi - Rajasthan, D. S. GOWDA VS CORPORATION BANK - Karnataka.
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Protection of Borrowers - Laws like the Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003, aim to protect borrowers from exorbitant interest rates charged by money lenders, reinforcing the principle that interest during litigation should adhere to legal caps S.Sekar vs M/s. P.C.Choudhary And Sons Rep. by its Kartha Mr.Padamchand Choudhary - Madras.
Analysis and Conclusion: The general principle is that while interest can be charged during the pendency of a money suit, it must conform to the maximum rates prescribed by law or aligned with current bank rates. Courts tend to scrutinize and restrict excessive interest charges, ensuring they are reasonable and within statutory limits. Typically, interest rates around 11% to 17% per annum have been upheld, whereas exorbitant rates like 96% per month are deemed unlawful. Therefore, the rate of interest that can be charged while a suit is pending depends on applicable legal provisions, statutory caps, and judicial discretion, with a common practice being to limit it to rates akin to those charged by commercial banks or as fixed by relevant laws.
References: - IND_MAD00000563845 - IND_MAD00000065064 - N. Balan VS Devaki R. Nair - Kerala - UNITED BANK OF INDIA VS B. T. W. INDUSTRIES - Calcutta - Arjun Singh VS Shanti Devi - Rajasthan - D. S. GOWDA VS CORPORATION BANK - Karnataka
Search Results for "What is the Rate of Interest that can be Charged in a Money Suit while Suit is Pending"
1971 0 Supreme(Del) 107 • India - Delhi
S.N.ANDLEY, T.V.R.TATACHARI
of amounts that may be due during and after the disposal of the suit, interest, and delivery of future dividend warrants. ... COURT FEES ACT - SECTION 7 (IV) (C) - SECOND PROVISO - APPLICABILITY - SUIT FOR DECLARATION AND INJUNCTION WITH REFERENCE TO PROPERTY ... Fact of the Case: The petitioners filed a suit for declaration and injunction, payment of a specific amount, payment ... pending the hearing and final disposal of the suit; (d) for an order that the defendant be ch....
• India - Current Civil Cases
SUDESH BANSAL
property, is maintainable – Consolidated civil suit, making joint prayer for partition, in order to ensure compliance of decree ... Section 60 – Redemption of mortgage – Prayer for partition, while seeking prayer for redemption of mortgage in respect of portion of suit ... property, while holding plaintiffs entitled for redemption of suit property in respect of half portion belonging to co-mortgagor ... Stay applications and other pending application(s), if any, stand(s) disposed of. ... to claim the mortgaged #HL_START....
2002 0 Supreme(Raj) 490 • India - Rajasthan
ARUN MADAN
Defendant also raised issues regarding interest rate, license under Money Lending Act, and harassment. ... Issues: Dispute over loan amount, interest rate, undue influence, public policy violation, and Money Lending Act compliance ... of the Case: Plaintiff filed a suit for the recovery of a loan amount with interest. ... In fact, plaintiff charged interest @ 96% per month whic....
1982 0 Supreme(Kar) 231 • India - Karnataka
K.JAGANNATHA SHETTY, P.A.KULKARNI
The court also held that the interest charged by the bank including penal interest and service charges was excessive and the court ... The court also held that the interest charged by the bank including penal interest and service charges was excessive and the court ... The court also held that the interest charged by the bank including penal interest and service charges was exces....
2020 Supreme(Online)(KER) 41986 • India - High Court of Kerala
the interpretation of permissible interest rates under the Act, finding the charged interest exceeding the legal limit, resulting ... Fact of the Case: The plaintiff, a money lending firm, filed a suit against the defendant for recovery of a debt evidenced ... Issues: Whether the promissory note was executed for consideration and whether the interest charged was permissible under
1993 0 Supreme(Ker) 181 • India - Kerala
K.JOHN MATHEW, K.NARAYANA KURUP
The court interpreted 'bank interest' as the rate charged by commercial banks for advances made to customers. ... Interest Rate - Money Recovery - Bank Interest - S.80 of the Negotiable Instruments Act - Interpretation of 'bank interest' - ... Fact of the Case: The plaintiffs filed a suit for money recovery, seeking interest at 18% per annum. ... According to the plaintiff who was examined as P.....
2000 0 Supreme(Cal) 397 • India - Calcutta
S.B.SINHA, HRISHIKESH BANERJI
of interest charged is excessive, is applicable to the present case. ... of interest charged is excessive, is applicable to the present case. ... respondents' acceptance of the rate of interest at 17%. ... The rate of interest charged by a Banking Company depends on the direction by the Reserve Bank of India. ... Rates of interest charged by Banking Companies not to be subject to scrutiny by Court....
2025 Supreme(Online)(Mad) 63164 • India - IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.B. Balaji, J
Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003 , the learned counsel would further state that the Act was brought about only to safeguard helpless and poor borrowers from money lenders who charged exorbitant rates of interest by way of kandu vatti, etc.
2025 Supreme(Online)(MAD) 15322 • India - IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice P. VELMURUGAN
Tamil Nadu Money Lenders Act, 1957 , the Government is empowered to fix maximum rate of interest that may be charged by a money lender and the rate of interest so fixed shall be correlated to the current bank rates of lending, as may be fixed by the Reserve Bank of India from time to time ... As per the said decision, prior to the filing of the suit, this Court has no authority to reduce the rate of inter....
2009 0 Supreme(Ker) 1060 • India - Kerala
money suit stands decreed in a sum of Rs.6,12,803.75 and interest on the principal amount of Rs.5,59,000/- at the rate of 11 per ... cent from the date of Suit till recovery and the second plaintiff was allowed to recover from the plaint schedule property charged ... of Suit till recovery and the third plaintiff was allowed to recover from the plaint schedule property charged on them and by sale ... /= and interest on the principal ....
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