https://www.taxtmi.com/caselaws?id=192686 Reserve Bank banking directives bound banks, but they did not authorise any interest structure the lender chose. Monthly rests on secured debt were not supported by proved banking practice, and quarterly rests were also unjustified on the facts. Under the Mysore Usurious Loans Act, the Court examined the whole transaction, including compounding and ancillary charges, and found 16.5 per cent interest with monthly or quarterly rests, penal interest and service charges to be unreasonable and oppressive. Relief was therefore available, penal interest was disallowed, and the interest burden had to be reduced with only limited processing charges permitted. en-us Fri, 22 Oct 1982 00:00:00 +0530 Mon, 12 Jun 2017 18:06:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=192686 Reserve Bank banking directives bound banks, but they did not authorise any interest structure the lender chose. Monthly rests on secured debt were not supported by proved banking practice, and quarterly rests were also unjustified on the facts. Under the Mysore Usurious Loans Act, the Court examined the whole transaction, including compounding and ancillary charges, and found 16.5 per cent interest with monthly or quarterly rests, penal interest and service charges to be unreasonable and oppressive. Relief was therefore available, penal interest was disallowed, and the interest burden had to be reduced with only limited processing charges permitted. Case-Laws Companies Law Fri, 22 Oct 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=192686