Thursday, November 1, 2007

#005 ARECA NUTS AND MONEY LENDING

INTERESTING SUPREME COURT CASE

CASE NO.: Appeal (civil) 5540 of 2001
PETITIONER: M/s. P. Vaikunta Shenoy & Co
RESPONDENT: P. Hari Sharma
DATE OF JUDGMENT: 31/10/2007


A Commission Agent) lent advance money to an arecanut garden owner, for ensuring a regular supply of arecanuts, at an interest rate of 18% p.a. As the garden owner failed to supply the nuts, the Agent sued him to recover the loan. The garden owner claimed that the Commission Agent is engaged in money lending business without licence. Can the loan be recovered?

Ans. Yes. Pl. click this link to see the Supreme Court judgement: http://www.judis.nic.in/supremecourt/qrydisp.aspx?filename=29724

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