- (1.) Heard Shri Manoj Gupta and Shri Mayank Agrawal, learned Counsel for the Petitioner. Shri Anurag Khanna appears for Pradeshiya Industrial and Investment Corporation of U.P. Ltd. (P.I.C.U.P.).
(2.) The Petitioner is a private limited company incorporated under the Companies Act engaged in the business of packaging. It borrowed Rs. 2,14,00,000 at the rate of 21% per annum to be paid in instalments under an agreement dated 31.10.1996 with P.I.C.U.P., a Government company as defined under Section 617 of (The) Companies Act. 1956 with more that 51% of shareholding held by the State Government, for establishing a packaging industry at Kosi Kalan. The Petitioner company wanted further advances to meet the increased production at its Agra unit and to increase the capacity at Kosi Kalan unit. The P.I.C.U.P. did not agree for any further advance of loan, on which the Petitioner company approached the Bank of Baroda, and under the terms and conditions with the Bank, it agreed to repay the entire outstanding amount to P.I.C.U.P.. The offer was accepted in terms of para 10 of the agreement dated 31.10.1996 on repayment of the entire outstanding amount with interest and prepayment premium on premature repayment, i.e., of Rs. 10,39,329.32, as the difference between the interest on which the loan was advanced and the then prevailing rate of interest.
(3.) In this writ petition the Petitioner company has prayed for: (a) to issue a writ, order or direction in the nature of mandamus directing the P.I.C.U.P. to accept the principal amount with accrued interest upto 31.7.1997 plus interest tax from the Bank of Baroda without insisting upon the premium of Rs. 10,39,329.32 paise demanded by the letter of P.I.C.U.P. dated 19.6.1997 and to relinquish its first charge on the Kosi Unit of the Petitioner by returning the title deeds and issuing no dues certificate to the Bank of Baroda and by sending the consequential letter about satisfaction of the charge to the Registrar of the Companies Delhi and Haryana. (b) to issue a writ, order or direction in the nature of mandamus directing the P.I.C.U.P. to refund to the Petitioner the follow up fees amounting to Rs. 1,05,500.00 and such portion of the front fees as may not have been utilised so far. (c) to issue a writ, order or direction in the nature of mandamus directing the P.I.C.U.P. to refund interest tax on up front fee amounting to Rs. 6,420.;