IFCI LTD Vs. T T LTD

JUDGEMENT

(1.) Impugned judgment of 23rd October, 2008 directs the appellantdefendant to refund the pre-payment premium of Rs. 22,19,000/- with pendente lite interest and future interest @12% p.a.

(2.) The facts giving rise to this appeal are already noticed in detail in the impugned judgment and need no reproduction. Suffice it would be to note that in this appeal the challenge is to refund of pre-payment premium in respect of Foreign Currency Loan advanced by appellant to the respondent under the Foreign Currency Loan Agreement of 10th September, 1992. Although Foreign Currency Loan Agreement does not provide for pre-payment premium but Clause-4.8 of the aforesaid agreement gives power to the lender to decide pre-payment premium and appropriate amount towards it. This right had been exercised by appellant vide communication of 8th August, 1997. Respondents vide letter of 11th September, 1997 had tendered Rs. 1,93,55,646/- towards payment of outstanding Foreign Currency Loan amount and had called upon the appellant to intimate if any balance amount is still payable.

(3.) While relying upon the aforesaid communication of the respondent, the learned Single Judge in the impugned judgment has held that communications between the parties resulted in a concluded contract based upon the prevailing policy of pre-payment as it existed when letter of 8th August, 1997 was issued by the appellant.