MATOSHRI RAMABAI Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Rule. Rule made returnable forthwith and heard finally at the stage of admission. The petitioner is a Trust running Lodging and Boarding "Ashramshala" and Junior College for the poor and needy students from Scheduled Caste, Scheduled Tribe and VJNT students. The Trust gets grant from the State/respondent No. 1 every year, 60% of the grants are given as advance prior to the commencement of every academic year in the month of May and 40% of the grant is disbursed in the month of December every year. In the Academic years 2007-2008 and 2008-2009 the respondent/State disbursed excess amount at the time of giving advance and therefore, the said excess amount was recovered by deducting the amount in installments from the grants of the subsequent years. The particulars in this regard from the secondary Ashramshala and from the Junior college Ashramshala are as follows:-

(2.) Thus the entire amount which was paid towards the excess advance was recovered by the State.

(3.) The respondent No. 1 issued the impugned letter dated 6.12.2010 demanding interest at the rate of 18% on the said excess amount which was paid and recovered by the respondents. On the point of payment of excess amount and the recovery of the said amount by way of deduction, the parties are not at issue but the impugned letter demanding interest at the rate of 18% on the said amount is disputed.