Power of Court to scrutunise the rate of interest

The Court can consider the Rate of interest from the dat eof Suit , it can not reopen the rate of interest prior to filign of the suit-if the said rate is in accordence of the guide lines of RBI !

The Court has no inherent jurisdiction to interfere and revise the rate of interest agreed to between the parties prior to the date of plaint in the case of private financiers. The Court has discretion to apply rates of interest as envisaged in C.P.C. only from the date of Plaint. But generally in commercial transactions, the Court would grant the contracted rate till the date of realisation unless it is pleaded to reduce while filing the Counter/Written Statement. There are SC judgments where in the case banks, rate of interest cannot be interfered with by the Courts.

Guru, Advocate, Chennai

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