THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION NO.16286 OF 2006 DATED 24TH JUNE, 2011 BETWEEN Smt.B.B.Sarojini and another …Petitioners And The Chairman, A.P.Co-operative Tribunal, Hyderabad and another. …Respondents THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION NO.16286 OF 2006 ORDER: The petitioners assail the Award dated 25.05.2006 passed by the Andhra Pradesh Co-operative Tribunal, Hyderabad, in O.P.No.93 of 2003. This Court, by order dated 04.08.2006, granted interim stay of all further proceedings pursuant to the Award under challenge subject to the condition that the petitioners deposit a sum of Rs.1,00,000/- within four weeks. The petitioners availed a house loan from the second respondent, the Metro City Criminal Courts Employees’ Mutually Aided Co-op. Credit Society Limited, Hyderabad, in the year 1999. Owing to the default committed by them in repayment of the said loan, the second respondent society filed O.P.No.93 of 2003 before the Andhra Pradesh Co-operative Tribunal, Hyderabad, for recovery. The petitioners contested the O.P. stating that they were ready and willing to pay the loan instalments, if given time. The Tribunal, by its Award dated 25.05.2006, held that the petitioners were jointly and severally liable to pay a sum of Rs.3,88,568/- to the second respondent society with subsequent simple interest at 12% per annum from the date of petition till realization. Sri J.Prabhakar, learned counsel for the petitioners, states that the only grievance that his clients have against the recovery sought to be effected by the second respondent society is with regard to the penal interest charged upon the loan amount. The learned counsel pointed out that the Tribunal itself mentioned that there was no agreement for payment of penal interest on the overdue amount and that the Tribunal had only directed payment of simple interest at 12% per annum. Perusal of the Award of the Tribunal reflects an observation therein to the effect that there is no agreement for payment of penal interest at 12% per annum on the overdue amount and the Tribunal directed only payment of regular interest at 12% p.a. (simple). That being so, the action of the second respondent society in levying and collecting penal interest on the loan amount even prior to the filing of O.P.No.93 of 2003 before the Tribunal appears to be unduly harsh. The second respondent society would be entitled to collect simple interest from the petitioners on the amount due at 12% per annum even as per the Award of the Tribunal. There shall accordingly be a direction to the second respondent society to calculate the amount due from the petitioners being the principal amount along with 12% simple interest per annum. The amount collected from the petitioners towards penal interest shall have to be adjusted and given credit as against the outstanding regular interest and principal amount due towards the loan. Upon calculating the balance amount still due and payable towards the loan, being the principal and interest due thereon at 12% simple interest per annum, the same shall be communicated to the petitioners by the second respondent society and the petitioners shall remit the amounts due as determined by the second respondent society within four (4) months from the date of receipt of such communication. The Writ Petition is disposed of with the above directions. Miscellaneous petitions in the writ petition shall stand dismissed. In the circumstances, there shall be no order as to costs. ____________________ SANJAY KUMAR, J. 24TH JUNE, 2011. Note: Issue copy in one week. (B/O) VGSR/PGS