ANMOL DAIRY Vs. COLLECTOR UDHAM SINGH NAGAR

JUDGEMENT

(1.) O. P. Garg, J. Heard Sri Rajesh Tandon learned counsel for the petitioner and Sri C. P. Misra, appearing on behalf of respondent-Bank.

(2.) THE learned counsel for the petitioners admits the liability for payment of the loan but the challenges the charge of the amount as compound interest as well as collection expenses. THEre is no dispute about the fact that the compound interest cannot be recovered in view of the decision of the Apex Court Corporation Bank v. Gowda and another, JT 1994 (7) SC 87. Likewise in view of the decision of this Court in Mirza Javed Murtaza v. U. P. Financial Corporation, Kanpur and another, AIR 1983 All 234, collection charges cannot be recovered until auction sale takes place. THE respondents shall accordingly deduct the amount of compound interest as well as that of the collection charges. THE amount under the two heads shall be deducted from the amount which is sought to be recovered from the petitioners.