- (1.) O. P. Garg, J. Heard Sri Rajesh Tandon learned counsel for the petitioner and Sri C. P. Misra, appearing on behalf of respondent-Bank.
(2.) THE learned counsel for the petitioners admits the liability for payment of the loan but the challenges the charge of the amount as compound interest as well as collection expenses. THEre is no dispute about the fact that the compound interest cannot be recovered in view of the decision of the Apex Court Corporation Bank v. Gowda and another, JT 1994 (7) SC 87. Likewise in view of the decision of this Court in Mirza Javed Murtaza v. U. P. Financial Corporation, Kanpur and another, AIR 1983 All 234, collection charges cannot be recovered until auction sale takes place. THE respondents shall accordingly deduct the amount of compound interest as well as that of the collection charges. THE amount under the two heads shall be deducted from the amount which is sought to be recovered from the petitioners. Half of the amount found outstanding against the petitioner after deducting the amount of compound interest as well as collection charges, shall be deposited by the petitioner by 31st January, 1999 positively. Failing which the entire amount shall become recoverable and the recovery proceedings shall revive. The balance amount shall be deposited by 31st May, 1999. If there be any other grievance of the petitioners, they may raise the same-within a period of 10 days to be counted from 31-1-1999. After depositing half of the amount as aforesaid, the Bank shall give its decision thereon by 28th February, 1999. Whatever amount is thereafter found outstanding against the petitioners, it shall be deposited by the petitioners by31st May, 1999. The Writ Petition is finally disposed of. Petition disposed of. .;