Arbitration Award Final: SC Upholds 24% Interest Rate Despite Usurious Loans Act Challenge

Lakshmi Hotel Pvt. Ltd. & Anr. Vs Sriram City Union Finance Ltd. & Anr. (Supreme Court of India) SC Upholds 24% Interest in Commercial Loan Arbitration Award & Rejects Challenge Based on Usurious Loans Act/Public Policy Background Appellants borrowed ₹1.57 crore from the Respondent NBFC at 24% p.a. (two agreements – 2006). Only ₹44.66 lakh repaid; thereafter continuous default. Appellants issued a ₹1.89 crore cheque, which bounced (NI Act proceedings initiated). Arbitration invoked; Arbitrator awarded ₹2.21 crore + 24% p.a. Section 34 challenge dismissed; Section 37 app...