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1996 Supreme(Kar) 365

T.S.THAKUR
RAM ESTATE – Appellant
Versus
CORPORATION BANK – Respondent


TIRATH S. THAKUR, J.

( 1 ) THIS writ petition prays for a mandamus directing the 1st respondent-Bank not to collect any amount from the petitioner in connection with the guarantee fee payable to the 3rd respondent-Corporation under the Loans Guarantee Scheme, 1971 and to refund to the petitioner the amount collected on that account till date.

( 2 ) WITH a view to develop an abandoned Coffee Estate, the petitioner submitted a scheme to the 2nd respondent, seeking financial assistance. The scheme was approved for a sum of Rs. 73,309 lakhs, credit facilities to which extent were granted by the 2nd respondent-Bank subject to the terms and conditions set out in the sanction letter as also the agreement and deed of hypothecation, executed in that regard.

( 3 ) DURING April, 1990, the 1st respondent appears to have debited a sum of Rs. 85,213. 30 to the petitioner's account. On being questioned about the said entry the Bank by its letter dated 28th May, 1990, informed the petitioner that the amount debited represented the levy of guarantee fee paid by the Bank to the 3rd respondent-Corporation under the Deposit Insurance and Credit Guarantee Corporation-Small Guarantee Scheme, 1971. The pe













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