National
Courts can examine reasonableness of bank interest rate on rural loans: SC
New Delhi, Feb 17 (IANS) The Supreme Court has said that provision of the Banking Regulation Act, 1949, that prohibits courts from examining the reasonableness of rate of interests charged by banks, will not operate in states with debt relief laws for agriculturists.
Section 21A of the Act says that the rates of interest charged by banking companies will not be subject to scrutiny by courts on the ground that the rate of interest charged by the banking company in respect of such transaction is excessive.
“… insofar as Section 21A incidentally encroaches upon the field of relief of agricultural indebtedness, set out in Entry 30, List II, it will not operate only in states where there is a State Debt Relief Act” covering rural indebtedness, said a bench of Justice Rohinton Fali Nariman and Justice Navin Sinha in their judgment on Friday.
The Entry 30 of List II (subjects on which states alone can make laws) deals with money-lending and moneylenders; and relief of agricultural indebtedness.
In other states where the State Debt Relief Act does not apply to banks at all, the court said that Section 21 would operate.
However, in the second category of the states, if the State Debt Relief Act applies to certain financial institutions, then again Section 21A of the Banking Regulation Act will not apply in respect of the loan given to the agriculturists.
The court verdict came as it did not accept the Reserve Bank of India’s contention that Section 21A falls within the central list of the subjects and even if some part of the Section 21A trench upon the debt relief laws passed by the state, the later should give way to the central law and not the other way round.
Referring to Article 246 of the Constitution and speaking for the bench, Justice Nariman said: “The constitutional provision says that when two entries in the Union List and the State List, are on a head-on collision and are irreconcilable, then, as a “last resort”, the entry in the State List is to give way to the entry in the Union List. But, this is only as a last resort”
“First, it is incumbent upon the court to harmonise the entries, if possible, by giving effect to both and not rendering any one of them otiose.”
Referring to the constitutional scheme of things, the court said: “insofar as agriculture is concerned, it is an exclusive State subject, with one exception — that custody, management and disposal of property, declared by law to be evacuee property, includes agricultural land, and makes it a Concurrent subject.”
Pointing out that agriculture was an exclusive state subject, the court said: “This being the case, the two entries are best harmonised by giving effect to both. This can only be done if the relief of agricultural indebtedness is to include banks, both cooperative and otherwise.”
The court held that the state debt relief law came under the special entry of “relief of agricultural indebtedness”, while the Banking Regulation Act came under the general entry of “banking”.
In any incidental encroachment of the State Debt Relief Acts by Section 21A of the Act on the relief to agriculturists from debt, Section 21A will have to yield to the state law.
The top court verdict came on a PIL by Jayant Verma, Dr B.D. Sharma, Debabrata Biswas, Bir Singh Mahato and Dr Suneelam who assailed the constitutional validity of Section 21A of the Banking Regulation Act, 1949.
Section 21A was inserted in the Act by the Banking Laws (Amendment) Act of 1983 which came into force February 15, 1984.
–IANS
pk/tsb
Lucknow: Vishal Singh, a renowned social worker from Lucknow, also known as Foodman, has once again made India proud. He was honored by the Happy Hands Gloves Cooperative Limited Company in Korathai, Thailand, for his work with the Hunger Free World Mission.
The Hunger Free World Mission’s meeting was held in Korathai, Thailand, under Vishal Singh’s leadership. Representatives from several countries, including Mr. Raja Dwivedi (Managing Director of Happy Hands Gloves Limited), Thailand Coordinator Mr. Raja Mishra, and member Mr. Varun Singh, attended the event.
Under Vishal Singh’s leadership, the attendees took a pledge to work together toward creating a hunger-free world.
Speaking on the occasion, Vishal Singh explained that the main goal of the Hunger Free World Mission is social participation. He said the mission is not just about feeding people but also about meeting other basic needs of those who are struggling. The mission focuses on helping families of terminally ill patients in hospitals by providing food and shelter. It also works to fulfill essential needs like education, jobs, and care for the elderly.
For the last 16 years, the Vijay Sri Foundation has been providing free services, benefiting thousands of people. Vishal Singh highlighted that the mission aims to gain global recognition like other organizations such as WHO, WWF, and Red Cross, which work for social causes.
During this meeting, Vishal Singh was appointed as the Chairman of the Hunger Free World Mission by representatives from various countries. They also discussed holding regular meetings in different countries to push the mission forward.
Business tycoon Dr. Abhishek Verma has also supported this humanitarian mission, vowing to promote the idea of “Seva Parmo Dharma” (Service is the highest duty) worldwide. Vishal Singh praised him, stating that people like Dr .Abhishek Verma inspire others to work for the betterment of society.
Recently, Romania’s Ambassador, Mr . Daniela Sezonov Ţane, invited Vishal Singh to the Romanian Embassy in Delhi, where they discussed the mission in detail. Impressed by his humanitarian work, she honored Vishal Singh and invited him to Romania to take the mission forward .
Food man Vishal Singh has been serving the people of India for the past 16 years. Through the Vijay Sri Foundation, he provides free meals to cancer patients & their families ,shelter, and education for women & children along with running free old-age homes in Lucknow.
In addition to his humanitarian work, Vishal Singh also addresses issues like crime and corruption through his role as Chairman of Seva Path Media and Managing Director of Vijay Sri Foundation.
During the COVID-19 pandemic, Vishal Singh and his team worked tirelessly to provide food and help to the needy, including starving children, elderly citizens, and pregnant women. Despite contracting the virus himself, he continued to assist others after his recovery. He even created a life-saving oxygen regulator using household items, which was praised by doctors both in India and abroad.
In his address at the meeting, Vishal Singh spoke about his mission to create a hunger-free world. He pointed out that India’s large population, along with issues like unemployment and poverty, has caused the country to fall on the Hunger Index. He urged people to contribute just one handful of grains daily to help create a hunger-free world.
He concluded by saying that through social participation, we can empower the people around us, meet their basic needs, and work together to build a stronger, more prosperous, and developed society.
Foodman Vishal Singh Honored for Hunger Free World Mission in Bangkok
Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
Cheers and Cheers: Barzilla’s Joyful Ode to Inclusivity and Celebration
Casino Days Reveal Internal Data on Most Popular Smartphones
Meghalaya Reserves Legalized Gambling and Sports Betting for Tourists
IPL 20202 UPDATE: KXIP vs MI IPL Dream11 Team Prediction for Today Match, Update Point Table of all Team.
In a Live debate AAP leader Syed Asad Abbas hurls abuses to BJP spokesperson Nupur Sharma.
‘India’s Most Wanted’ trailer out Arjun Kapoor on hunt of Osama-Bin-Laden
Time to move on: Sonakshi on Shatrughan’s joining Congress
