- (1.) Noida Entrepreneurs Association, (the Association) , the appellant, is a representative body of various entrepreneurs who have obtained term-loans from the Uttar Pradesh Financial Corporation (the Corporation). The term loans are refinanced by the Industrial Development Bank of India (IDBI). The loan agreements specifically provide for the rate of interest and the penal interest in the event of default.
(2.) The Association filed a writ petition before the Allahabad High court seeking a direction to the Corporation to adhere to the guidelines laid down by the IDBI in respect of interest and the penal interest. The High court dismissed the writ petition. This appeal by the Association is against the judgment of the High court.
(3.) According to the Association the Corporation is charging from them the interest at higher rate than the ceiling provided under the guidelines issued by the IDBI. It is further alleged that the penal interest in the event of default inrepayment, provided in the agreement was also over and above the norms laid down by the IDBI.;