By the Court.—Heard Shri Manoj Gupta and Shri Mayank Agrawal, learned counsel for the petitioner. Shri Anurag Khanna appears for Pradeshiya Industrial and Investment Corporation of U.P. Ltd. (PICUP).

2. The petitioner is a private limited company incorporated under the Companies Act engaged in the business of packaging. It borrowed Rs. 2,14,00,000/- at the rate of 21% per annum to be paid in installments under an agreement dated 31.10.1996 with PICUP, a Government company as defined under Section 617 of (The) Companies Act, 1956 with more that 51% of shareholding held by the State Government, for establishing a packaging industry at Kosi Kalan. The petitioner company wanted further advances to meet the increased production at its Agra unit and to increase the capacity at Kosi Kalan unit. The PICUP did not agree for any further advance of loan, on which the petitioner company approached the Bank of Baroda, and under the terms and conditions with the Bank, it agreed to repay the entire outstanding amount to PICUP. The offer was accepted in terms of para 10 of the agreement dated 31.10.1996 on repayment of the entire outstanding amount with interest and prepayment premium on premature repayment i.e. of Rs. 10,39,329.32, as the difference between the interest on which the loan was advanced and the then prevailing rate of interest.

3. In this writ petition the petitioner company has prayed for :

“(a) to issue a writ, order or direction in the nature of mandamus directing the PICUP to accept the principal amount with accrued interest upto 31.7.1997 plus interest tax from the Bank of Baroda without insisting upon the premium of Rs. 10,39,329.32 paise demanded by the letter of PICUP dated 19.6.1997 and to relinquish its first charge on the Kosi Unit of the petitioner by returning the title deeds and issuing no dues certificate to the Bank of Baroda and by sending the consequential letter about satisfaction of the charge to the Registrar of the Companies Delhi & Haryana.

(b) to issue a writ, order or direction in the nature of mandamus directing the PICUP to refund to the petitioner the follow up fees amounting to Rs. 1,05,500.00 and such portion of the front fees as may not have been utilised so far.

(c) to issue a writ, order or direction in the nature of mandamus directing the PICUP to refund interest tax on up front fee amounting to Rs. 6,420/-.”

4. Brief facts giving rise to this writ petition are that the petitioner approached the PICUP for setting up industrial unit at Kosi with appraisal fees of Rs. 35,000/- paid on 27.1.1996. The PICUP agreed to advance the loan of Rs. 2,14,00,000/- at the interest rate of 21% in accordance with the installment schedule given in the agreement, for a period of 5 years. The PICUP also charged upfront fess of Rs. 2,14,000/- with interest tax of Rs. 6420/-, legal services charges of Rs. 35,000/-, follow up fees to be deducted from first disbursement of Rs. 72,500/- and follow up fees to be deducted from second disbursement of Rs. 33,000/-. The repayment of the principal amount was to start after 1 ½ years of the first disbursement. The interest, however, was due and payable immediately in four quarterly installment. It is stated that the petitioner regularly paid the interest installments. The petitioner wanted to set up another industrial unit at Agra, which was working at 50% capacity. By the time Kosi Kalan unit was set up, the Agra plant started working in full capacity. The petitioner decided to install additional machinery at Kosi and required an additional loan of Rs. 1.5 crores. The PICUP did not agree to advance the loan on which the petitioner approached the Bank of Baroda and entered into agreement for advance of Rs. 3 crore 64 lacs from which the petitioner was to discharge the entire liability of PICUP. The petitioner as well as the Bank of Baroda wrote to PICUP to inform the bank the amount due from the petitioner so that the same could be paid by the bank to PICUP. In reply t