IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.13293 of 2007 M/S KAUSHAL INDUSTRIES Versus THE STATE OF BIHAR & ORS ----------- 04 06.08.2008 The petitioner is a supplier of diesel engines. Pursuant to loan granted by the Respondent-Bank, the petitioner was required to supply the lonees with diesel engine and the cost was paid by the Bank to the petitioner directly. For duly performing this function the petitioner was required to deposit by way of security a sum of Rs. One lakh with the Respondent-Bank, which was refundable not before 30 days of execution of the work. This means that once supplies were made after 30 days, thereafter, the security money had to be released. After the year 2002, petitioner’s agreement with the Respondent-Bank was not renewed, consequently, petitioner stopped supplying the diesel engine to the lonees of the Respondent-Bank and thus became entitled to refund of the security money on one plea or the other the refund was not made forcing the petitioner to come to this Court with the plea - 2 - that the actions of the respondents who are State within the meaning of Article 12 of the Constitution and is to act in accordance with law of the Article 14 of the Constitution and they are thus liable to make arrangement for refund of the security with interest for the unusual delay in the matter. During pendency of the writ petition the respondents realizing their false position refunded the security money of Rs. One lakh by cheque dated 23.06.2008 and the matter was posted for consideration of compensatory interest payable to the petitioner. The Respondent-Land Development Bank is a commercial banking organization which makes earning from interest on moneys lent out to persons, as it charges interest, it must equally pay interest on money held by him. In order to balance equities, I think, it will be just and proper that from the date the security became due for refund till the date of payment petitioner could be entitled to a simple interest of 6 per cent per annum. The same shall be calculated and paid as compensation to - 3 - the petitioner within a period of one month from the date of production of this order before the Managing Director of the Respondent- Bank. With these directions and observations, the writ petition stands disposed of. Trivedi/ (Navaniti Prasad Singh,J.)