PANKAJASHA MENON Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) The first defendant in O. S.251/83 is the petitioner.

(2.) The suit is for recovery of Rs. 7,94,857/- with 15% interest, instituted by the respondent. The petitioner in his defence inter alia has contended that the interest charged on the transactions mentioned in the plaint, is excessive and as such attract the provisions of the Cochin Usurious Loans Act, for short the 'Loans Act'.

(3.) The respondent plaintiff took the stand that, assuming 'Loans Act' applies to the transactions, based on which the suit is instituted, the court was incompetent to reopen the transactions with a view to scale down the interest, in view of the provisions contained in S.21A of the Banking Regulations Act of 1949, for short the 'Regulation Act'.