- (1.) The main question that falls for consideration in this writ application is whether the respondents-Bihar State Financial Corporation is entitled to charge interest on the sanctioned amount of loan from the date of sanction or from the date when the actual possession of the assets has been delivered to the petitioner.
(2.) It appears that the unit of M/s. Bihar Wood Product, Daltonganj was auction sold by the respondent-Corporation and the bid of the petitioner was accepted. Out of the total consideration amount of Rs. 5,25000/- the petitioner deposited Rs. 1,31,250/- within the stipulated time as per the agreement. After, issuance of sale order an agreement was executed by and between the petitioner and the respondent-Corporation on 31-1-95 and on the same day actual physical possession of the premises was given to the petitioner. After handing over possession of the premises the petitioner started making repayment of the amount to the Corporation. The petitioner learnt at a later stage that the Corporation is charging interest from the date when the auction was held some times in 1994.
(3.) Respondents case, on the other hand, is that the Board of the Corporation approved the sale of the mortgaged assets in favour of the petitioner and, accordingly sale order was issued on 23-9-94 in which it was specifically mentioned that current interest with effect from 1-9-94 will be realized from the purchaser at the current rate of interest i.e. 18% before handing over the possession and, thereafter, current interest will be paid on due date and, as such, as per the terms of sale order interests up to date of handing over possession from 1 -9-94 was to be paid by the petitioner.;