Subodh Prasad Gupta v. Jharkhand State Housing Board through Its Managing Director
Case brief
What is this about?
Jharkhand High Court, Ranchi; W.P. (C) No.3868 of 2021; Rajesh Kumar, J.; decided 04.09.2024. Compound versus simple interest in Clause-8 of a Hire Purchase Agreement with the Jharkhand State Housing Board; Housing Board demand of Rs.1,76,58,891/- on compound interest (letter No.506/aa dated 27.08.2021 of Revenue Officer; Managing Director's order dated 13.07.2021) held unsustainable because Clause-8 stipulates only 14% per annum interest on dues and 18% per annum on default without any compounding stipulation; both demand documents quashed; quantum to be recalculated on simple interest at Clause-8 rate within one month; petition disposed of.
What did the court decide?
Impugned letter No.506/aa dated 27.08.2021 of the Revenue Officer and order dated 13.07.2021 of the Managing Director quashed and set aside; respondent authority directed to recalculate the quantum on the basis of simple interest at the rate prescribed under Clause-8 within one month.