PUNJAB & SIND BANK vs M/S ALLIED BEVERAGES COMPANY P.L..

The Supreme Court upheld the High Court's modification of the Debts Recovery Tribunal's order, reducing the interest rate on the loan from 18% p.a. with monthly rests to 14% p.a. with annual rests, as per the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The Court emphasized that the interest rate should be reasonable and not punitive, aligning with the principles of fair lending practices. The outcome affirmed the High Court's decision while ensuring compliance with statutory provisions regarding interest rates.