SANDHYA SINGH W/O UMA SHANKAR SINGH Vs. CHIEF BRANCH MANAGER, CENTRAL BANK OF INDIA; ASSISTANT BRANCH MANAGER

JUDGEMENT

(1.) The present writ petition has been filed for a direction to the respondent-Bank to make correction in calculating the interest which has wrongly been calculated at the rate of 10.75% per annum instead of 9.5% fixed per annum and to consider and dispose of the petitioners' objection/representation to enable them to make repayment of the loan amount after correction of the calculation.

(2.) It is submitted on behalf of the petitioners that loan under the Housing Finance Scheme for Rs.4,50,000/- was sanctioned in favour of the petitioners by the respondent Bank on 06.03.2007 on fixed rate of interest i.e. 9.5% per annum in respect of which mortgage of land situated at Hajipur was created. It is stated that the Bank has erroneously charged interest @ 10.75% per annum instead of 9.5% per annum which was originally fixed. Pursuant to the notice issued 23.11.2011 under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, "SARFAESI Act"), the petitioner filed a representation as contemplated under Section 13(3-A) of the SARFAESI Act on 17.01.2012 raising the aforesaid objection (Annexure-4) but without disposal of the same, the respondent-Bank is proceeding for recovery. It is therefore stated that the auction sale of the mortgaged property fixed on 23.09.2015 is wholly arbitrary and illegal. The petitioners express their readiness to make repayment of the outstanding amount found due upon correct calculation applying the contracted rate of 9.5% per annum.

(3.) Learned counsel for the respondent-Bank has filed a counter affidavit accepting that the rate of interest was increased from 9.5% per annum to 10.75% per annum on 02.03.2012 but however an amount of Rs.10,000/- had been credited to the petitioners' account.