IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C) No. 10304 of 2006(B)
1. O.M.RAMAN,
... Petitioner
Vs
1. THE AREA MANAGER,
... Respondent
2. THE DEPUTY MANAGER (RECOVERY),
For Petitioner :SRI.M.C.ANTONY
For Respondent : No Appearance
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
Dated :05/12/2006
O R D E R
C.N. RAMACHANDRAN NAIR, J.
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W.P. (C) No. 10304 OF 2006 B
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Dated this the 5th day of December, 2006
J U D G M E N T
In spite of repeated notices issued to the L.I.C. there is no response
from them. I do not think the case should be pending in this court. Petitioner’s
case is that substantial amount is paid to the loan account and the balance
claimed by the L.I.C. Is on account of excessive interest. I do not find any
justification for this court to interfere with demand of interest at contract rate.
However, following decisions in similar cases, there will be direction to the
respondents to completely waive penal interest, if petitioner clears balance
arrears on or before 31.1.2007. The 1st respondent will give detailed
statement of account to the petitioner showing the advances made, debits on
interest and other charges, credits given for payments showing the balance
liability, item wise. There will be a specific direction to the respondents to
exclude penal interest and issue demand notice for payment of balance
amount and interest. However, if petitioner does not pay the balance amount
before 31.1.2007, the waiver of penal interest will stand automatically
cancelled on default and respondents will be free to proceed for recovery of
entire dues.
Writ petition is disposed of as above.
(C.N. RAMACHANDRAN NAIR, JUDGE)
aks