IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR WEDNESDAY, THE 2ND FEBRUARY 2011 / 13TH MAGHA 1932 WP(C).No. 27139 of 2008(E) --------------------------------- PETITIONER(S): ------------------- A.M.SHANMUKHAM, MEENATHERI, MANAPPURAM P.O., CHERTHALA. BY ADV. SRI.JOBY CYRIAC RESPONDENT(S): -------------------- 1. STATE OF KERALA, REPRESENTED BY ITS CHIR SECRETARY, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. THE SECRETARY TO GOVERNMENT , GENERAL EDUCATION DEPARTMENT, STATE OF KERALA. 3. THE KERALA SCHOOL TEACHERS AND NON TEACHING STAFF WELFARE CORPORATION LTD., REPRESENTED BY ITS MANAGING DIRECTOR, OFFICE OF THE DIRECTORATE OF PUBLIC INSTRUCTION, JAGATHY, THIRUVANANTHAPURAM -14. 4. THE MANAGING DIRECTOR, KERALA SCHOOL TEACHERS AND NON TEACHING STAFF WELFARE CORPORATION LTD., OFFICE OF THE DIRECTORATE OF PUBLIC INSTUCTION,JAGATHY,THIRUVANANTHAPURAM-14. 5. SECRETARY CUM TREASURER, K.S.T. & N.T.S WELFARE CORPORATION LTD., OFFICE OF THE DIRECTORATE OF PUBLIC INSTRUCTION, JAGATHY, THIRUVANANTHAPURAM. -14 * 6. THE CHAIRMAN AND MANAGING DIRECTOR, HOUSING AND URBAN DEVELOPMENT CORPORATION, 3RD FLOOR, KHADHI TOWER, KALOOR, COCHIN.(DELETED) svs .......2/-... ...2... WP(C).No. 27139/2008(E) * 6TH RESPONDENT IS DELETED FROM THE PARTY ARRAY AT THE RISK THE PETITIONER AS PER ORDER DATED 06/07/2010 IN I.A. 8872/2010. 7. DEPUTY DIRECTOR OF EDUCATION, ERNAKULAM. ** ADDL. R8 IS IMPLEADED 8. THE ACCOUNTANT GENERAL, (A&E), OFFICE OF THE ACCOUNTANT GENERAL, MG ROAD, P.B.NO.560, THIRUVANANTHAPURAM-695 039. ** IS IMPLEADED AS ADDL. R8 AS PER ORDER DATED 30/11/2010 IN I.A. 15909/2010. R1 TO R5 & R7 BY GOVT.PLEADER SRI.T.T.MOHAMOOD THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 02/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs WP(C).No. 27139/2008(E) APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE G.O.(MS)NO.158/84/G.EDN. DATED 14/08/1984. P2: COPY OF THE GO DATED 31/10/1985. P3: COPY OF THE LOAN SANCTION ORDER BO.HC/4/6397/6012/89 ALW DATED 23/12/89. P4: COPY OF THE STATEMENT OF ACCOUNTS PERTAINING TO THE HOUSING LOAN ACCOUNT OF THE PETITIONER TILL JANUARY 2006. P5: COPY OF THE PAY-IN-SLIP DATED 02/03/2005. P6: COPY OF THE ORDER PASSED BY THE TALUK LEGAL SERVICE COMMITTEE, CHERTHALA, AS PLD NO.93/2005. P7: COPY OF THE G.O.(M.S)8/2005/GED DATED 11/01/2005. P8: COPY OF THE STATEMENT ISASUED BY THE 4TH RESPONDENT DATED 16/06/2008. RESPONDENT'S EXHIBITS: R3(a):COPY OF APPLICATION. R3(b):COPY OF SANCTION ORDER NO.HC(4)6497/6012/89/ALW DATED 23/12/1989. /TRUE COPY/ P.A. TO JUDGE svs T.R. Ramachandran Nair, J. - - - - - - - - - - - - - - - - - - - - - - - - W.P.(C) No. 27139 of 2008-F - - - - -- - - - - - - - - - - - - - - - - - - - - Dated this the 2nd day of February, 2011. JUDGMENT The petitioner, while working as Headmaster, retired from service in March, 2008. The writ petition concerns the claim for disbursement of DCRG. 2. It appears that a housing loan taken by the petitioner from the third respondent Corporation. According to the petitioner, the principal amount was Rs.59,720/- as evident from Ext.P3 loan sanction order. The rate of interest charged on the loan is 12.5% per annum subject to change from time to time. If the Government sanctions interest subsidy at 3.5% to the Corporation, the Corporation will charge interest at 9% per annum. It is pointed out that the petitioner was repaying the amount by instalments and according to him, he has remitted a total amount of R.1,50,000/- till the year 2005. The petitioner has raised various claims in the writ petition. 3. On behalf of respondents 3 to 5, a counter affidavit has been filed. Going by the averments contained in para 6 that interest subsidy was sanctioned only upto 1995-96. With regard to the rate of interest payable wpc 27139/2008 2 and the balance amount in the account of the petitioner, it is stated in para 4.i that the rate of interest charged for the loan is 12.5% per annum subject to changes from time to time. The petitioner has remitted an amount of Rs.1,04,475/- as on 8/2005 and an amount of Rs.1,29,389/- which includes interest upto 6/2008 is still pending to be remitted. Learned counsel for the petitioner submitted that the interest has not been charged properly with the permitted rate and according to him, even though interest is chargeable only per annum, interest has been charged on a monthly basis which has resulted in swelling of the balance amount. Evidently, even going by para 4 of the counter affidavit, the interest is 12.5% per annum which is subject to changes from time to time. It is not clear whether any change has been effected during the currency of the loan. 4. Therefore, a recalculation of the balance amount with notice to the petitioner, will have to be done by the Corporation. The interest will charged only per annum and accordingly a revised statement will be issued to the petitioner after notice to him, within a period of one month from the date of receipt of a copy of this judgment. The DCRG will be disbursed depending upon the outcome of the settlement of the loan account. The pension sanctioning authority will issue NLC/LC after finalisation of the wpc 27139/2008 3 exercise as directed above is over. The writ petition is accordingly disposed of. No costs. (T.R. Ramachandran Nair, Judge.) kav/