The court emphasized the importance of considering the loan terms, repayment history, and the petitioner's retirement date to determine the amount payable by the petitioner, highlighting the principle of fairness and reasonableness in loan repayment calculations.

The prayer in this writ petition is to issue a Writ of Mandamus for bearing the respondents from levying and recovering the commercial rate of interest for the petitioners Staff Housing Loan sanctioned in F.No.29/28, dated 27. 1980 or recovering overdue interest on his agricultural loan sanctioned in No.71/124, dated 16. 1981.

2. The case of the petitioner is that the petitioner was appointed in the service of the respondent bank on 2. 1975 as Shroff-cum-Godown Keeper and posted at Madurantakam Branch. On 7. 1988, he was promoted as Special Assistant and transferred to Acharapakkam Branch. In the year 1991, he was re-transferred to Madurantakam Branch and he served in the said branch upto 31. 2001, i.e till the date of his voluntary retirement.

3. The petitioner while in service, applied for a Staff Housing Loan to the bank in the year 1980 and the same was sanctioned by order of the fourth respondent dated 27. 1980. As per the sanction order, the petitioner has to repay the sanctioned loan of Rs.50,000/- in twenty five years through deduction in salary at the rate of Rs.235/-per month. For first 100 months, Rs.285/-per month for the next 100 months, and at the rate of Rs.235/- for the remaining period. The said housing loan was sanctioned with a simple interest at the rate of 4%. The petitioner availed the first stage of loan of Rs.20,000/- on 8. 1980 to carry out the construction work upto the basement level and availed the second stage of Rs.15,000/-on 22. 1981. The petitioner purchased construction materials like cement etc., and timber for window and door frames,

4. According to the petitioner, due to sudden rainfalls the building materials got damaged and therefore, he could not complete his house construction. Even subsequently, he could not complete the house due to illness of the petitioners wife, the death of the petitioners father-in-law. Since the construction was not further made, he has not availed the third stage loan of Rs.15,000/-. Thus, the petitioner availed only a sum of Rs.35,000/- as loan from the respondent bank. From February, 1982 onwards the repayment of instalments began. The petitioner submitted a representation to reduce the rate of installment due to his family difficulties and consequently, the Central Office reduced the monthly payment from Rs.235/- to Rs.165/-per month, which the petitioner paid. The petitioner also obtained agricultural loan from the respondents for a sum of Rs.31,900/- to irrigate the petitioners agricultural lands.

5. The petitioner after his voluntary retirement apprehended that the respondent bank will levy commercial rate of interest from the date of sanction of the loan and therefore filed the above writ petition.

6. The respondents have filed a counter affidavit by stating that as per condition No.11, of accepting voluntary retirement, the petitioner has to be relieved on 31. 2001 and the branch should sent copies of the relieving letter to Settlement Section, Pension Cell, Regional Office, Kancheepuram and subject to closure of Staff Housing Loan with commercial rate of interest and recovery of crop loan with overdue interest, the petitioner will get the terminal benefits. The petitioner accepted the said condition by accepting the copy on 21. 2001 and he was relieved on 31. 2001. The petitioner having agreed, he is not entitled to challenge the commercial rate.

7. Additional counter affidavit was also filed by the respondents by stating that the petitioner availed a sum of Rs.35,000/-as housing loan in two stages. The repayment was re-scheduled at the rate of Rs.165/-per month from his salary from February, 1982 onwards. The monthly amount deducted from the petitioners salary was credited towards principal, and interest accrued at the concessional rate was calculated on the principal outstanding every month on simple interest separately. Interest was not debited to the loan account. The simple interest accrued will be recovered without interest on t