JUDGMENT :

Heard learned advocate Mr. Ashok L. Shah with learned advocate Mr. A.B. Munshi for the petitioners, learned Senior Advocate Mr. R.S. Sanjanwala with learned advocate Mr. Bomi H. Sethna for the respondent No.1 and learned advocate Mr. Amar Bhatt for the respondent No.2.

1. Rule, returnable forthwith. Learned advocates for the respondents waive service of notice of rule.

2. By this petition under Article 226 of the Constitution of India, the petitioners have prayed to direct the respondent No.1 to refund an amount of Rs.1,12,55,885/- which was charged by the respondent No.1 towards pre-payment charges with interest at the rate of 2% per annum as per the guidelines dated 14.07.2014 issued by the respondent No.2-Reserve Bank of India.

3. The facts in brief which give rise to this petition are as under:

3.1. The petitioners were the partners in M/s. Sai Enterprise and they jointly applied to the respondent No.1-a Non-Banking Financial Company (NBFC) to avail loan against property amounting to Rs.58,75,00,000/- at the floating rate of 12.5% per annum linked to Indusind Bank base rate on 30th March, 2012. The period of loan was 96 months which was revised to 180 months later on.

3.2.