IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN TUESDAY, THE 18TH AUGUST 2009 / 27TH SRAVANA 1931 WP(C).No. 15108 of 2007(W) -------------------------- PETITIONER(S): --------------- K.SIVADASAN, ANIL BHAVANAM, ASRAMOM, KOLLAM. BY ADV. SRI.K.SUBASH CHANDRA BOSE RESPONDENT(S): --------------- 1. STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVT., LOCAL ADMINISTRATION, SECRETARIAT, THIRUVANANTHAPURAM. 2. THE SECRETARY, KOLLAM DEVELOPMENT AUTHORITY, KOLLAM. 3. THE DEPUTY TALUK OFFICER (RR), TALUK OFFICE, KOLLAM. GOVERNMENT PLEADER SMT.SMITHA SUKUMAR ADV. SRI.A.MOHAMMED FOR R2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 18/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No. 15108/07. APPENDIX PETITIONER(S)' EXHIBITS P1. COPY OF THE RECEIPT DTED.12.1.94 BY R2. P2. COPY OF THE RECEIPT DTD.5.2.04 BY R2. P3. COPY OF THE NOTICE DTD.23.8.05 BY R2. P4. COPY OF THE NOTICE DTD.29.8.06 BY R2. P5. COPY OF THE NOTICE RECEIVED ON 9.3.06 BY R3. P6. COPY OF THE REPRESENTATION DTD.10.5.07 TO R1. P7. COPY OF THE REPRESENTATION DTD.10.5.07 TO R2. Sdk+ ///True copy/// P.A. to Judge S.SIRI JAGAN, J. ================== W.P(C).No.15108 of 2007 ================== Dated this the 18th day of August, 2009 J U D G M E N T The 2nd respondent, the Kollam Development Authority, advanced a housing loan to the petitioner as per a scheme for financial assistance to the weaker sections of the society. The petitioner has been paying the instalment amounts. Although occassionally belatedly, out of the total 168 instalments, the petitioner has already paid 105 instalments. The balance principal amount was only Rs.1,20,000/-. The petitioner has subsequently paid Rs.1,00,000/-. Now the petitioner is being asked to pay a further amount of Rs.1,27,890/-. The petitioner is now disputing this statement of accounts of the 2nd respondent. According to him, even going by the calculations given by the 2nd respondent, the total balance amount due would be only Rs.59,036/-. 2. With the help of statement of accounts, the 2nd respondent would dispute the contentions of the petitioner. 3. I have considered the rival contentions in detail. 4. The calculation statement of the 2nd respondent itself makes a strange reading. That is not in accordance with the ordinary principles of accounting and I was surprised to find that in the statement of accounts, the rate of penal interest was shown as 5 per W.P.C.15108/07 2 cent. The loan is supposed to be given as per a scheme for financial assistance to weaker sections of the society. Even for ordinary loans, banks recover only 2.5 per cent penal interest. But the 2nd respondent has fixed the penal interest at 5 per cent. The contention of the 2nd respondent is that it is as per the Government policy at that time. Whether it is Government policy or not, five per cent penal interest in addition to the interest of 15 per cent is certainly usurious. Since this loan is intended for weaker sections of the society, I am of opinion that the 5 per cent penal interest should be excluded. The petitioner has agreed to pay the balance amount without penal interest. Accordingly, this writ petition is disposed of with the following directions: The 2nd respondent shall serve a demand notice on the petitioner excluding the penal interest from the statement of accounts filed in the Court and the petitioner shall pay that amount within one month from the date of receipt of the notice. Sd/- sdk+ S.SIRI JAGAN, JUDGE ///True copy/// P.A. to Judge W.P.C.15108/07 3 S.SIRI JAGAN, J. ================== W.P.(C).No.15108 of 2007 ================== Dated this the 10th day of August, 2009 O R D E R The learned counsel for the respondents submits that as on today the total balance amount payable by the petitioner is Rs.1,27,895/-. That does not tally with their statement of accounts filed in this Court on 28.6.2007 with a memo. As per that statement, the total amount as on May, 2007, is Rs.2,37,969/-. Out of the same, admittedly the petitioner has paid only Rs.1,00,000/-. The balance as on May, 2007, itself is Rs.1,37,967/-. One fails to understand then how, as on today, the amount would be only Rs.1,27,895/-. The W.P.C.15108/07 4 petitioner has filed an affidavit wherein he has given a statement of accounts adding interest and penal interest as computed by the respondents. The balance due as per the same is only Rs.59,036/-. Unless the respondents satisfactorily explain this discrepancy in their accounts which is evident from the amounts stated by them, I would be constrained to accept the statement of accounts of the petitioner. Therefore, the respondents shall explain the discrepancy in their amounts as stated above. Post on 17.8.2009. sdk+ S.SIRI JAGAN, JUDGE W.P.C.15108/07 5