K PERUMALSAMY Vs. DEPUTY GENERAL MANAGER

JUDGEMENT

(1.) The Tamil Nadu Industrial Investment Corporation Limited is a financial corporation established under Section 3 of the State Financial Corporation Act, 1951. The petitioners in these writ petitions belong to the same family. They had availed loan assistance from the said corporation, running to few crores for construction of warehouses. The terms and conditions of the loan were duly informed to the petitioners. Having accepted the same, the petitioners availed the loan and completed the constructions as well. As a matter of fact, the petitioner in W.P.(MD).No.7622/2014 - Mr.K.Perumalsamy had secured a loan of Rs.600 lakhs; the petitioner in W.P.(MD).No.7636/2014 - Mrs.K.Gupthajothi had secured a loan of Rs.251.33 lakhs and the petitioner in W.P.(MD).No.7637/2014 - Mrs.K.Vijayalakshmi had secured a loan of Rs.354.18 lakhs. As per the terms and conditions of the said loans, the amount with interest should be repaid in 84 monthly installments. The normal interest charged was 15% and the penal interest was 2.50%. Clause 33 of the terms and conditions states that the borrower shall pay pre-closure premium at the rate of 1% for the pre-closure of Term loans by borrowers on the pre-closed amount being the amount ahead of repayment schedule for the unexpired period excluding rebate for prompt payment if any. .

(2.) In the case on hand, the petitioners had paid the entire loan arrears by pre-closing the loans. At the time of such pre-closure, the pre- closure premium at the rate of 1% was collected from the petitioners in terms of clause 33 of the terms and conditions, referred to above. Thus, as of now, there is no amount due from any of the petitioners to the respondent / Tamil Nadu State Financial Corporation Limited. While so, the petitioners have now come up with these writ petitions challenging clause 33 of the terms and conditions of the loan, as referred to above and the covering letters for the terms and conditions of the loan.

(3.) I have heard the learned counsel for the petitioners and the learned counsel appearing for the respondents. I have also perused the records carefully.