CHAUDHARY HANS RAJ Vs. STATE OF PUNJAB

JUDGEMENT

(1.) This writ petition is filed to issue a writ of certiorari to quash the order dated 5.2.1980 (Ann. P.6), passed by the Director of Industries, Punjab.

(2.) The petitioner Chaudhary Hans Raj took a loan of Rs. 20,000/ - from the Director of Industries, Punjab for setting up an oil mill at Khanna, District Ludhiana and mortgaged his property, agreed to pay interest at the rate of 3% per annum and if he was in default according to the terms of the mortgage deed, he agreed to pay interest @ 10% per annum. The petitioner Chaudhary Hans Raj committed default in payment of the instalment on 1.1.1966, therefore, the respondents claimed the penal interest @ 10 per cent. Against the demand of penal interest, the petitioner filed a writ petition in C.W.P. No. 2491 of 1972 which was decided on 2.4.1973 holding that the rate of 10% interest was a contractual rate in the alternative on default and not a penalty and accordingly dismissed the writ petition. According to the petitioners, he paid an amount of Rs. 14,000/ - during the pendency of the writ petition and a sum of Rs. 2,000/ - on 30.3.1979. Thereafter, the petitioner asked the respondent to furnish the statement of account and the respondent failed to furnish the same. The respondent further directed the petitioner to pay a sum of Rs. 13,491.72 paise as due upto 11.4.1980. Thus demand includes the original 3% interest plus 10% interest as penalty and is in total disregard of the judgment of this Court in C.W.P. No. 2491 of 1972. Challenging the said demand vide Annexure P.6, the petitioner filed this writ petition.

(3.) During the pendency of the writ petition, Chaudhary Hans Raj died on 1.6.1991 and an application was moved by his wife, sons and daughters to bring them on record as legal representatives of her husband namely herself, her sons and daughters. By a separate order in Civil Misc. No. 4155 of 1992, the said application has been allowed by me. The only point that is to be decided in this writ petition is whether the petitioner is liable to pay the penal interest at the rate of 10% in addition to the original interest of 3%.