The Court directed the bank to waive the 3% penalty interest and charge 16% as agreed, granting the petitioner three months to deposit the due amount.
Petitioner granted three months time to deposit amount; bank directed to waive 3% penalty and charge 16% interest.
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CWP No.6413/2008
IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JAIPUR BENCH, JAIPUR O R D E R
S.B. Civil Writ Petition No.6413 of 2008.
Parasher Motors, Kota VERSUS
Baran Central Sahakari Bank Limited and another
Date of Order :::: 01.08.2011.
Hon'ble Mr. Justice Dalip Singh
Mr. Mahesh Gupta, Counsel for the Petitioner Mr. Sanjay Singhal, Counsel for the Respondents
By the Court :
Heard learned counsel for the parties.
The dispute, which has been raised by the petitioner was in respect of bank allegedly charging the interest @ 21% per annum, whereas as per the petitioner the agreed rate of interest is 16% per annum and in case the bank agrees to charge the interest @ 16% per annum the petitioner had submitted on 21.07.2008 that the petitioner is willing to deposit the amount at the said rate of interest.
This Court on 21.07.2008 after hearing the learned counsel for the parties passed the following order:-
“In case however, the petitioner fails to deposit the amount of Rs.5 lacs within a period of one week as aforesaid towards the first installment, the respondent shall be free to proceed against the petitioner for recovery of the amount calculated with interest @ 16%.
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CWP No.6413/2008
In terms of the aforesaid order dated 21.07.2008 the petitioner has been unable to deposit the amount of Rs.five lacs, as was submitted by the learned counsel for the respondents.
Since, the dispute is only with regard to the rate of interest and the learned counsel for the respondents submitted that they are not charging interest @ 21% per annum, but in addition to this agreed rate of interest the respondent-bank is charging 3% interest by way of penalty.
Having considered the matter, I deem it just and proper to direct that the respondent-bank would waive the penalty amount of 3% and charge interest @ 16%, as agreed by the learned counsel for the petitioner. The petitioner is granted three months time to deposit the entire amount due as on 31.07.2011. In case, the petitioner fails to deposit the entire amount within the aforesaid period of three months, the respondent-bank would be free to proceed against the petitioner for recovery of the amount calculated with interest @ 16% plus penalty @ 3%.
The writ petition stands disposed of as aforesaid.
(Dalip Singh) J.
Ashok/
2 issues framed by the court
Whether the respondent bank should waive the penalty interest of 3% and charge only the agreed rate of interest of 16%.
Whether the petitioner should be granted time to deposit the outstanding amount due.
Parasher Motors, Kota
Baran Central Sahakari Bank Limited
Dalip Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
