CHEMOPULP TISSUES LTD Vs. STATE OF U P

JUDGEMENT

(1.) The short controversy in this petition is whether respondents are entitled to recover collection charges at the rate of 10% in view of the Circular dated 30.8.1975 (Annexure-7 to the writ petition] issued by the respondent No. 1 or at the rate of 3.75% as averred by the petitioner.

(2.) The facts as succinctly stated, are that proceedings were initiated against the petitioner for the recovery of loan taken by the petitioner from U. P. Financial Corporation and from the Pradeshiya Industrial and Investment Corporation of Uttar Pradesh Ltd. For the recovery of loan, citation (Annexure-4 to the writ petition) was issued. But the recovery proceedings were withdrawn without resorting to sale. The citations (Annexure-4 to the writ petition) is now confined to collection charges sought to be recovered at the rate of 10% which has been disputed by the petitioner.

(3.) No counter-affidavit has been filed by the respondents and. therefore, the fact that the recovery proceedings were withdrawn remains un controverted.