TMI Blog1975 (8) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... st at 5 per cent over the Reserve Bank of India rate rising and falling with a minimum of 11 per cent per annum with quarterly rests One of the points that appears to have been urged on behalf of the appellants before the trial Court was that the rate of interest was excessive. The trial Court considered this question and held than 11 per cent interest per annum with quarterly rests was excessive and 11 per cent interest per annum with half-yearly rests from 24th May, 1967, to the rate of plaint would be reasonable and thereafter it provided for interest at (5 per cent per annum till realisation. The defendants in the suit have preferred this appeal questioning the award of this interest at 11 per cent with half-yearly rests. The appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Court on this question. The only paragraph in the written statement ,to which my attention was drawn in this behalf is paragraph 15, which states: In my view of the case this defendant is not liable to pay interest at 11 per cent per annum. The rate, method and manner of calculation of interest are not correct. The interest claimed is also-excessive. The plaintiff is not entitled to claim compound interest. Even in the other paragraphs of the written statement, there has not been a. single statement to the effect that the appellants were agriculturists. The learned Counsel merely relied on two sentences in the evidence of the fifth defendant as D.W. 1 who was the sole witness on behalf of the appellants herein, wherein he stated Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest would be the proper rate having regard to the circumstances of the case. The provisions contained in the Usurious Loans Act, 1918, themselves indicate certain circumstances and factors which are to be taken into account for the purpose of coming to a conclusion whether the rate of interest in a particular case is excessive or not. The learned Counsel for the appellants took me through the entire evidence of D.W. 1 and, in the whole of the evidence, there is not a single statement which has any bearing on the consideration of this question of the rate of interest with reference to the provisions of the Usurious Loans Act. This Court, in Sri Nageswaraswami Bhakta Veluguri Sarayohayya Gupta v. Gupta Lazarus (1954) M.W.N. 684 after re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring weekly shandy hoping to sell the articles so purchased at 50 per cent profit within 2 or 3 days, he cannot be said to pay an excessive rate of interest even if he agrees to pay simple interest at 15 per cent per annum as the sum borrowed is small and he will be paying that rate only for a few days, and no other person in the world would give him a loan at a lower rate of interest and the loan would be necessary for him to earn the 50 per cent profit he reasonably hopes to get. On the other hand, when there is good property given as security as in this case, any rate mere than 12 per cent simple interest per annum must be held to be excessive. If the security afforded is worthless, such as a land which has got submerged or a land situat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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