Petitioners had borrowed a loan of rupees one crore from the respondent-Corporation for the purpose of developing touring unit/Hotel in Karkala Town. In this connection, petitioners have entered into a Deed of Hypothecation dated 20-9-2003 providing for the terms and conditions of repayment of the loan. Petitioners made an application for foreclosure/prepayment of the loan account. The respondents sent a communication to the petitioners as per Annexure-C on 15-7-2005 stating that the foreclosure of the loan account is permissible upon repayment of equivalent two quarterly principle installments with the prior approval in writing of the Corporation and subject to the terms and conditions as may be stipulated by the Corporation in that behalf. It was further informed that payment of 2% of the premium on the advanced payment/foreclosure account is necessary. Petitioners have called in question the said communication at Annexure-C in this writ petition. Petitioners have also sought for a declaration that the decision to levy 2% premium on the advanced payment/foreclosure of the account is arbitrary and illegal and without jurisdiction and to quash the letter dated 30-5-2000 in No.