IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE THIRD DAY OF MARCH TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE V.ESWARAIAH WRIT PETITION NO : 13590 of 2005 Between: S. Madeena, E-107526, conductor, Waltair Depot, ..... PETITIONER AND 1 The APSRTC, Rep. by its Regional Manager, Visakhapatnam, Visakhapatnam Depot, 2 The Depot Manager, APSRTC, Waltair, Visakhapatnam Depot, 3 The Secretary SRBS, APSRTC, Musheerabd. Hyderabad. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a writ of Mandamus, or any other appropriate, writ, order or direction, declaring the action of the 3rd respondent herein in ordering recovery from the salary of the petitioner on the head of HBA-SRBS loan, though recovered more than double to the loan amount, by stating that the out standing balance is Rs. 41,271/- vide Proc. dt. 29-4-2005, which is illegal, unjust and arbitrary, contrary to SRBS and as such liable to be set aside in the interest of justice and pass such other order or orders as may deem fit and proper in the circumstances of the case. Counsel for the Petitioner: Mr.S.M.SUBHAN Counsel for the Respondents: SMT.B.G.UMA DEVI The Court made the following : ORDER: Heard learned counsel appearing for the petitioner as well as the learned counsel appearing for the respondents. 2. It is the case of the petitioner that the Special HBA Sanctioning Committee recommended for the house building loan under SRBS for the purchase of site to the petitioner and accordingly the sanctioning authority released an amount of Rs.32,000/- towards the first instalment on 09-11-1995. It is stated that the petitioner has to deposit the original title deeds for the value of the loan amount and he has deposited the title deeds but mentioned the value of the said site as Rs.18,000/- in the registered document. It is stated that though the value of the site is Rs.18,000/- petitioner has obtained the loan of Rs.32,000/- and thus there is a misuse of loan amount of Rs.14,000/-. It is further stated that as the value of the site was only Rs.18,000/- and he has misused an amount of Rs.14,000/- penal interest is sought to be collected on the availed loan of Rs.14,000/- and accordingly calculated the penal amount on Rs.14,000/- along with the instalment amounts. The grievance of the petitioner is that no penal interest can be levied on the alleged misused amount of Rs.14,000/- as the real value of the plot is more than Rs.32,000/- and therefore, it cannot be said that any part of the availed loan of Rs.32,000/- is misused. 3. I am of the opinion that merely because the petitioner has stated the value of the land for the purpose of registration and without any determination of the real market value of the plot purchased or produced for security it cannot be said that the petitioner misused the said amount. Admittedly, no enquiry has been conducted while coming to the conclusion that the value of the plot was only Rs.18,000/- but not Rs.32,000/- or more. Therefore, I am of the opinion that the said action of the respondents in collecting the penal interest on Rs.14,000/- is illegal and unsustainable. 6. Accordingly, Writ Petition is allowed declaring that the respondents are entitled to collect the usual interest and instalments on the availed loan of Rs.32,000/- alone. There shall be no order as to costs. _________________ V.ESWARAIAH,J 03rd March, 2008 Tsy To 1.2CCs to 2.2CD copies