[1] IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR --------------------------------------------------- SPL. APPL. WRIT No. 429 of 2008 M/S.M.S.INDUSTRIES V/S R.F.C. & ORS Mr. SP SHARMA, for the appellant / petitioner Mr. RAJESH JOSHI, for the respondent Date of Order : 6.8.2008 HON'BLE SHRI N P GUPTA,J. HON'BLE SHRI KISHAN SWAROOP CHAUDHARI,J. ORDER ----- BY THE COURT (PER HON'BLE GUPTA,J.) Heard learned counsel for the parties. The petitioner, has filed this appeal, against the judgment dated 25.10.2007, of course, allowing the writ petition, and giving following directions: “1. That the petitioner shall make payment of Rs.1,50,000/- within a period of six weeks from today to the respondent RFC and the petitioner will remain present before the respondent No.2 Senior Manager (FR), RFC on 3.12.2007; 2. The respondent RFC is directed to compute the exact amount now payable in terms of the afore- quoted terms of settlement communicated to the petitioner on 3.2.2005 and inform the petitioner in writing; 3. The petitioner is directed to clear such dues of balance amount within a period of six months from the date of communication of such amount by the respondent RFC; 4. If petitioner makes any representation on or [2] before 3.12.2007 raising certain points to be considered by the respondent RFC like charging of interest on subsidy amount etc., the same shall be decided by the respondent RFC by a speaking order within a period of four weeks from the date of such representation. The petitioner would not be entitled to raise any such decision by RFC, as a ground for non-compliance of direction No.(1) and (3) aforesaid”. Appellant's case is, that in compliance of this order, the appellant paid a sum of Rs.1,50,000, and submitted a representation dated 03.12.2007, the amount of Rs.1,50,000 was deposited on 03.12.2007, and in the representation, it was pointed out, that out of the amount of Annex.1, Rs.3,85,344 as on 29.7.2004, the amount of Rs.71,400, which was deposited as upfront amount, is required to be adjusted against the principal amount. Likewise, the amount of subsidy is also required to be adjusted against the principal amount, and the calculation of interest is required to be made since 30.07.2004, and accordingly the matter should be settled. This representation was responded to by the Corporation vide communication dated 15.01.2008 informing that the appellant has to pay Rs.2,32,751 with further interest from 01.01.2008 upto deposition of the amount, so as to square up the account, and the appellant was directed to deposit the said amount within a period of six months. Then, another communication was addressed by the respondent on 23.01.2008, informing that in the representation, the appellant had asked for waiving of a sum of Rs.13,259, [3] charged as interest on subsidy, but that cannot be waived off, as it was a matter of grant of loan against subsidy, and the interest was charged on the loan amount, therefore, it cannot be waived off. Before us, the controversy about the interest on subsidy amount is not alive. The only controversy, now is, as to whether the upfront amount paid by the appellant is required to be adjusted against the principal amount, in making calculation of interest. The contention, of the learned counsel for the respondent, is that the upfront amount, was an amount, which was received by way of expenditure to be incurred by the Corporation, and is not required to be adjusted against the outstanding amount (due in the appellant) of the Corporation. We have examined this contention. A look at Annex.1 itself show that it specifically stipulates as under: “The A/c shall be settled by charging simple documented rate of interest as on 29.07.2004 but upfront amount deposited for SLC shall not be accounted for while calculating simple rate”. In our view, a bare reading of this stipulation, itself makes it clear, that it was never stipulated, that the upfront amount will not be adjusted, rather, all that this stipulation means, that while making calculation of [4] interest, on the outstanding loan, the upfront amount will not be taken into consideration. In our view, considering the above, the account of the petitioner, is required to be settled, in the manner, treating Rs.3,85,344, as mentioned in Annex.1, to be due as on 29.07.2004, then, calculating interest thereon upto March 2005, when the appellant deposited Rs.1,75,000. On the remaining amount interest should be calculated as per Annex.1 upto 30.11.2007, when the petitioner deposited Rs.1,50,000, and then, the upfront amount may be adjusted, and if thereafter, any further amount remains to be outstanding, on that amount interest may be calculated from 30.11.2007 @ 13% per annum, and on making payment of such outstanding amount, the account of the appellant shall stand squared up. The respondent, is directed to inform, the outstanding amount, if any, to the appellant, within a period of 15 days from today, and on receipt of the information, the appellant shall pay the same within one month thereafter. It is clarified that the interest on such outstanding amount shall be calculated from 30.11.2007 till today. If the amount is not paid, by the appellant, within one month, from the date of information, that amount shall carry further interest, till actual payment. The appeal, is accordingly, disposed of. [5] (KISHAN SWAROOP CHAUDHARI ),J. ( N P GUPTA ),J. jpa/