{"id":138029,"date":"2009-05-25T00:00:00","date_gmt":"2009-05-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/islamic-academy-of-education-vs-the-chairman-on-25-may-2009"},"modified":"2016-03-17T00:09:45","modified_gmt":"2016-03-16T18:39:45","slug":"islamic-academy-of-education-vs-the-chairman-on-25-may-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/islamic-academy-of-education-vs-the-chairman-on-25-may-2009","title":{"rendered":"Islamic Academy Of Education, vs The Chairman on 25 May, 2009"},"content":{"rendered":"
Karnataka High Court<\/div>\n
Islamic Academy Of Education, vs The Chairman on 25 May, 2009<\/div>\n
Author: P.D.Dinakaran(Cj) & V.G.Sabhahit<\/div>\n
IN THE HIGH couacr or KARNATAKA AT BANGAL\u00a2\u00a7,iE_\n\nDATED THIS THE 25*\" DAY OF MAY 2{l_Ci9-- I  A' %\n\nPRESENT\n\nTHE HoN'3LE MR. 9.0. oINAI\n\n\n\nunder the Indian Trust Act, having its reglsterw o\ufb02titoat\n\nMangaiore. The first Opposite Party is 5\n\nregistered under the Companies  1\" V\n\nthe purpose of Housing and Urban  \n\nregistered of\ufb01ce at New DeihE'.:__'T3je   \n\nis the regionai office of the    First\nand second Opposite  \u00e9stobiished for the\npurpose of advanoing :..hoog;g\u00a7--.  = \ufb01orrowm for\nconstruction.\"  the Bank which\nstood as or:  Party in a tripartite\nagreemzont __ hottveeo.'tho.'_':'oo:np\u00a3alnant and the Oppos\ufb01e\n\nParties.\n\n.     averred that during the year 2000,\n\nitho-.oomof3{1j\u00e9h't.opproached the second opposite party -\n\n _ Re\u00a7Eona\u00a3..__v'Gff\u00a7to for availing loan for construction of\n\n.1\"\"\"'=uY'\u20ac!nepo'..ya.--iwedicai and Dental College at Mangalore. After\n\nA  ithegotio\ufb01on, the second Opposite Party sanctioned a loan\n\n \"j of..\u00a7%s.1S Crores on 28.06.2000 under Scheme No.16984.\n\n \u00ab:~V'Further, on 13.02.2002, the second Opposite Party\n\nsanctioned a ioan of Rs.500 Lakhs under Scheme\n\nxx\/'\n\n\n\nNo.17432 to the compialnant. Thus, under the above said\n\ntwo schema, a total sum of R520 Crores \ufb02nenciel\n\nassistance was provided to the complainant   _\n\ninterest at 14.5% and 13.5% respectively.  \"  2 \n\nOpposite Party at the request of=:A_t11e.:.'\u00a2onipt\u00e9s\u00a7nent~.e\ufb01etnv\n\nsanctioned Scan of R5300 Lathe  \n\non 23.12.2002, repayable  per\nannum, subject to the'tae\u00e9rmsvteno_it:ons mentioned In\nthe loan sanctioned   --'th:\u00a7v--'.ij'j;;en ag-remnant\nexecuted in tn-;1t'ts;ej1atr.ttA ?:fo\"}a\u00a2i:itateare\u00a75ayrnent and asso\nto adh'ere._  of repayment, a tripartite\n\nagreementv--.nameiy.  was entered into\n\n between the \"'cotnp!ainant, Opposite Party No.1 and\n\n  No.3. As per the Escrow Agreement,\n\nAthro\u00a7:_gh\"'v't\u00a7_;.g\u00a7\u00a7___  oppos\u00e9te Party mow Sanka', an\n\n _ arra\u00a7ti--gem:ent':\"9\u00a7as made for repayment of the sum of $15.27\n\n2 W H  1 4.\" ' --~ .VofC:ro.res vtith lnterat.\n\n 2.2 It is further averred that a request was made\n\n2' oh\" oy the complainant to the second Opposite Party to rwuce\n\nthe rate of Interest for the ioan of Rs.2'0 Crorm covered by\n\\J\n\n\n\nScheme Nos.16984 and H432 from 14.5% and 13.5%\n\nrespectively to 12.75%. The second Opposite ' \n\nconsidering the said request, directed the  K \n\nremit a sum of Rs.4.5 Iakhs as  chargg\n\nthe rate of interest on 2s.12,..2oo2%'ana_rzs.4.t5r Lamas \n\nremitted by the compiainant 'toy:\u00a7ierde.re.setA.cE1aArg\u00e9.'V1'he V\n\nsecond Opposite Partgf by l_t$M_!fetter\"'r'deted'V20;\u00a71'.2O03,\nintimated the comp|alhen't_   of Interest\nchargeable on.~tt';Ae.VLg'\u00a7rinr;=Ai__Apa1!t  is 12.75%\nunder the   that review interest\nwould   . O3..07.2003. However, the\nsecond A'Gp|:)osite'=-- to charge 14.5% and\n\n interest._ the \"loan amount contrary to their\n\nreducethe rate of interest from 14.5% and\n\nI   and immediately, in March 2003, the\n\nsa%d'4--.fact'we\u00a7s brought to the notice of the second Opposite\n\n :j'P.arty.xsuhsequently, the second Opposite Party addwessed\n\n  at dated 01.09.2004 to the compialnant assuring that\n\n -they would reset the rate of interea at 10.2\u00a7% on the\n\nht entire loan racmty with effect from e1.o7.2oo3 provided\n\nthe compiainant paid e sum of Rs.36,39,440\/- as reset\n\nxx\n\n\n\ncharges and maintained Debt Service Reserve of \n\nLei-the with the third Opp:-site Party Escrew Bar;~i<er_.g, \n\nsaid demand cf R3180 Lakhs as 9ebt_.Eeeerv:e:j \n\ntotaiiy unreesenabie, iiiegai ane ur\u00a7erifereeehie"'ee: \n\nthe tetei ioen of R525 Crores.  _\n\n2.3 Thereafter, t%1e_'jse;iarri't'i".\\i;\u00a7;.rp,\u00a2,\u00a7eii;e   ietter\ndated 87.12.2064, essureci  reduce the\nrate ef interest, re  91.10.2904\nprevideci the;\u00a2er%_i4r:ie\u00a7'\ufb01erit"r2eii3'e  ei' i'-23.27-40 Lakhs as\nreset  "--\u00a2e\u00a7r1';7ieirzeri'E,*"in geed faith, made\npeyrnenigef  second apposite Party\non \u00a7.4.12.2\u00a704\u00a7 . V. VV;ii1_eA"._ee:r\u00a7Tpiainant, basw on the said\n\n_~.e3surerice__,medelii\u00e9y' \u00abtizeeecend apposite Party, caicuiated\n\nA"VtVheV:,in?.er\u00abe.ei~et\ufb01re rate of 10.25% for the quarter ending\n\n paid the same be the second Opposite\n\n i?arty..K' firie rzempieinent was not in arrears ef any ioen\n\n vvVTheeecend Qppesite Party instead ef adhering\n\n ie lt\ufb01eiriiistand, by fetter dated 15.02.2005, informw the\n\nT eierhgziainant that there was short payment ef interest of\n\n iis.17.66 ieiszhs and there was deiay 93' 9 days by the\n\n\\?\n\n\n\n-3,\n\nagency in remitting the amount and therefore, request fer\nresetting cf interest from 31.10.2004 ceuid not be\n\nconsidered. The second respondent refused to reduce___the<\/pre>\n
rate ef interwi: as assured and despite the iegaip~e_Vtxi;i_cevv<\/p>\n
dated 02.12.2955, ameunt of Rs.1,06,2$,41’8{v\u00a7V.:t\u00a7iiet;tee’.__.J”-.<\/p>\n
by the ssecend Opposite Party under_Jthe__heas;i”:fes\u00e9t;v\ufb01herftges. ” ” it<\/p>\n
and excessive interest has net been paid.<\/p>\n
parties. Hewever, the :empti_atn.anti:vas l\u00a7mEtveciV.ij\u00a3’ts_\u00a2;:iaim% <\/p>\n
fer Rs.99,83,00D\/–. It is furtheytksierted t\ufb01at:  dpposite
\nparties have faiiw ta re:’se\u20ac:r At\ufb01tfcptet\ufb01h am: teasonabie service<\/p>\n
to the tf\u20ac\u00a7ii”!’tV\u00a3)ia\u00a7:!.\u00a7T,8\ufb02t” jthere is”tS*ef”:i:iency in service an the<\/p>\n
part ofithaf  which they are iiabie to<\/p>\n
compensatethe c\u00a2V!fs’:;$ir-_3’iri5nrV1t and therefore, the complaint<\/p>\n
 ” for  agbeate said” re.–*–\u00e9–\ufb01s.\n<\/p>\n
 State Commission by order dated<\/p>\n
G2.t\u00a7’&i\u00a72\u00a7O\u00a7’;’i: that as the compiaireant has sought for<\/p>\n
‘.V.’direetiari’.i:_te’ the Gpposite Parties to pay a sum of<\/p>\n
 ‘u..jifRs_9\u00a7.,’3Z-v3;0G0i– aiieging breach of centract in the<\/p>\n
 etagtfg\u00e9teinant, the appropriate remedy for the compiainant<\/p>\n
” “tees to approach the Civii Court and net by way of \ufb01iing a<\/p>\n
-9\u00bb
\ncomplaint before the State Commission under the
\nConsumer Protectlon Act. Accordlngiy, the State<\/p>\n
Commission has dismissed the complaint reserving liberty
\nto the complainant to approach the Civil court, <\/p>\n
‘ advised. Being aggrieved by the said order  <\/p>\n
Commission, the complainant hag preferretl’1jj~thi*a:  w <\/p>\n
Petition.\n<\/p>\n
4. We have heard tha’l’leas’hed  appea\ufb01ng
\nfor the writ petitioner;  l A  A<\/p>\n
5′.’ “””   oo:\u00a7hseIh”_”Vap’oearlng for the writ
\npetitioner  eomplaint was matntainable
\nbefore _ the%”‘$ta”teVVCot:-ktle\u00e9slon and the finding that the<\/p>\n
 ._v_con.1pl~ai;giAant A- pet: ‘o:—.\u00aber should approach the Gvtl Court is<\/p>\n
ht \u00e95\u00bb.vt}_ two have given carefui consldera\ufb01on to the<\/p>\n
VA “~Tf’coVnt*e\u00abntlons of the learned counsel appearing for the<\/p>\n
A’   o\u00e9ztlttoner and scrutinized the material on record.<\/p>\n
V’<\/p>\n
7. The material on record would cleady shoaethat<\/p>\n
even as per the averments made in the <\/p>\n
complainant alleges breach of contract  ‘eppios\u00e9te–\u00ab’<\/p>\n
parties. The impugned <\/p>\n
Commission is passed in original v”\u20ac:o:ri*2pla.ii1i:I_’..’v;$\u00a7;’23\/V3930?’VQ<\/p>\n
and the order passed by the Stete Cominisisten
\nin the Writ Petition can’:i:.e_ chaiii-hge;iyi’ytiin__appeai’ before the<\/p>\n
1 National Commission in  ‘ofV”‘the_\\.p”reyrie_ions of Section<\/p>\n
19 of the Coneeefier  Mm an
\neffective arid  of appeal is
\nprovided’ to   ‘to;approech the National
\nCommieeion.’_ by   ‘we do not find any ground<\/p>\n
to interfere “with ,tiaeA’tn1p\u00a3iVgned order in etacise of writ<\/p>\n
 of thxis-~<':ourt and accordingly, we hold that<\/p>\n
 tieefeVis"n:e'  this writ petition and pass the foiiowlng<\/p>\n
Olideif – L' % L  t <\/p>\n
2  writ Petition is disposed of reserving Hberty to<\/p>\n
 ' petitioner to file appeal before the National<\/p>\n
 Commission against the impugned order passed by the<\/p>\n
State Commission in complaint No.23\/2007 dated<\/p>\n
ox'<\/p>\n
.11.\n<\/p>\n
02.08.2007. Am the contentions urged in the writ pe\ufb01tiotf-_<\/p>\n
are kept open to be urged before the Appellate Autho\ufb02t\u00a7;_\ufb01 ‘ <\/p>\n
 VY\u00e9$\/N6} ‘ ;,}’\/<\/p>\n
 _ We5:2..Hofst’ No<\/p>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court Islamic Academy Of Education, vs The Chairman on 25 May, 2009 Author: P.D.Dinakaran(Cj) & V.G.Sabhahit IN THE HIGH couacr or KARNATAKA AT BANGAL\u00a2\u00a7,iE_ DATED THIS THE 25*” DAY OF MAY 2{l_Ci9– I A’ % PRESENT THE HoN’3LE MR. 9.0. oINAI under the Indian Trust Act, having its reglsterw o\ufb02titoat Mangaiore. The first […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-138029","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nIslamic Academy Of Education, vs The Chairman on 25 May, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/islamic-academy-of-education-vs-the-chairman-on-25-may-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Islamic Academy Of Education, vs The Chairman on 25 May, 2009 - 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