M.Y.EQBAL, J. - (1.) IN this writ application the petitioner has prayed for quashing the letters dated 29.1.2002 and 19.6.2002 communicated to the petitioner vide letter dated 7.10.2002 whereby the petitioner was intimated that he is liable to repay the loan amount with interest at the ,rate of 18% from 3.2.1992 and further for declaration that the respondent -Corporation is not entitled to demand interest at the rate of 18%.
(2.) IT appears that in 1991 the petitioner was sanctioned loan of Rs. 2,60,000/ - and in 1992 further amount of Rs. 36,000/ -was disbursed by the corporation and an agreement to that effect was executed. According to the petitioner in 1995 the Corporation sent notice dated 9.8.1995 informing the petitioner that the loan, was sanctioned on the condition of repayment with interest at the rate of 13.5% during the period of implementation and 14.5% after implementation together with 2% penal interest in case of default in repayment of loan. The petitioner approached the" concerned respondents requesting to make necessary correction in the said demand notice and the respondents assured the petitioner that they would make necessary correction in the same. The petitioner alleges that the loan amount together with interest was regularly paid which was acknowledged by the respondent -Corporation. Petitioner 'sfurther case is that by letter dated 17.10.2001 a detailed calculation of payment of principal, interest and other charges was served upon the petitioner with a request to pay off the total dues within 15 days. The petitioner said to have paid the entire amount but in spite of that the impugned letter was issued revising the interest and informing the petitioner that interest shall be chargeable at the rate of 18% from 3.2.1992.
(3.) FROM perusal of Annexure -6 which is a letter dated 17.10.2001 issued by the respondent - Corporation to the petitioner it is evident that the Corporation charged interest at the rate of 14.5% and whatever dues was calculated, the same was paid by the petitioner. For better appreciation the letter No. 449, dated 17.10.2001 is reproduced hereinbelow: "Bihar State Financial Corporation, Hazaribagh Ref. No. 449/ - dated : 17.10.2001 To, Shri Vijay Kumar Singh C/o. M/s. Ajit Enterprises, At Purnadih P.O. Phulwaria (Domchanchi) Dist. Koderma Dear Sir, Re -Payment of Corporation dues Enclosed please find herewith the renewed calculation sheet of the demand notice correcting thereby the interest calculation at the rate 14.5% as agreed up by you through your agreement dated 10.4.1991. Now as per fresh calculation your total dues as on 31.8.200,1 stands in this way: Principal : 62,608.00 Interest : 37,966.00 Other charges : 1,559.00 Total : 1,02,133.00 You are therefore requested to pay off the total dues within 15 days from the date of this letter. Yours faithfully Sd/ - (R.C. Mistry) B.M. 17.10.2001 Encl : Fresh demand notice" ;