Madras HC says that courts need not order payment on contractual rate
JimAndaz.com - India News and Events of India
Advanced Search
 
Regional News RSS Feed
Home > Legal > Madras HC says that courts need not order payment on contractual rate
Madras HC says that courts need not order payment on contractual rate
 
Madras HC says that courts need not order payment on contractual rate

Madurai: People facing civil cases with regard to housing loans cannot be asked by banks to pay interest at the rate the loan was given from the date of filing of case till the date of realisation, the Madras High Court bench here has said.

Allowing an appeal filed by a couple against Ind Bank Housing Ltd, Justice S Palanivelu said only a court concerned could fix the rate of interest by exercising its discretionary powers under order 34 Rule 11 of the Code of Civil Procedure.

He agreed that the rates of interest charged by banks could not be subjected to judicial scrutiny as per the Banking Regulation Act. But a division bench of the Madras High Court had held that courts need not order payment on contractual rate because the CPC order could not be overridden by the Banking Regulation Act, he said.
Posted On : 05 Aug 10
Madras HC says that courts need not order payment on contractual rate
Tags | About Us | Sitemap
Copyright © 2009 Jupiter Infomedia Pvt. Ltd. All rights reserved including the right to reproduce the contents in whole or in part in any form or medium without the express written permission of Jupiter Infomedia Pvt. Ltd.