DAN BAHADUR RAI Vs. TAHSILDAR/SUB

JUDGEMENT

(1.) We have heard learned counsel for the petitioner and also learned counsel for the respondents including Sri Varma for Respondent No. 2.

(2.) The petitioner has taken certain loan and he has submitted that a substantial amount has already been paid by him. Now on failure of making payments of some instalments, recovery certificate has been issued. Learned counsel for the petitioner contends that he is prepared to pay the amount in instalments less the recovery charges and finally he submits that the compound interest charged by the Bank is wholly unjustified

(3.) We have considered the facts and circumstances of the case. We direct the petitioner to deposit the entire amount, after receiving the statement of accounts from the Bank, in three equal instalments. The first instalment shall be paid by the petitioner by the 15th July, 1987, second by the 15th Oct., 1987 and the third by the 15th Jan., 1988. The petitioner is also directed to deposit the instalments direct to the State Bank of India, Respondent No. 2, which the Bank shall accept if tendered in time and also issue a receipt of the same. The petitioner is directed to make an application before Respondent No. 2, the Bank, within two weeks from today for furnishing him a copy of the statement of account. While preparing the statement of accounts the Bank is directed not to include the recovery charges In calculating the interest,'the Bank is further directed to take into consideration the case of Bank of India Vs. Karam Ranga Rao and others, reported in AIR 1986 Karnatak, page 242.