1. The application is filed under section 45QA of the Reserve Bank of India Act, 1934 (the Act) seeking directions from this Bench to refund the excess amount of interest Rs.1,06,326/- collected, together with interest at the rate of 9% per annum from 22.11.2003 till the date of payment.,

2. Shri P C Harikumar, learned Counsel for the applicant in support of pleadings submitted that the applicant borrowed a sum of Rs.3,85,588/- on 10.07.2002 as against the sanctioned loan of Rs.4,00,000/-. The said loan shall be repayable in 10 years commencing from 05.08.2002 and the interest be calculated at the rate of 9% per annum on the diminishing balance method. The applicant paid 15 instalments of Rs.826.9/- regularly. The respondent Company even after receipt of Rs.1,40,573/- (Rs.8269x17 instalments) as against the loan of Rs.4,00,000/- . The respondent demanded further a sum of Rs.5,57,326/- without any basis or calculations. The applicant had paid the money and got released the documents mortgage with the company. As per calculations the applicant has to pay a sum of Rs.4,51,000/- only however the respondent company has collected 5,57,326/- hence the applicant had paid an excess of Rs. 1,06,326/-. The learned Counsel submitted that as per the provisions laid down for Nidhi companies they should not collect interest more than 9% per annum if the loan is obtained on the scrutiny of mortgage of property. Thus the respondent company has collected excess interest by violating all norms regulations notifications of RBI. In view of the above, he requested this Bench be direct the respondents to refund the excess amount of Rs. 1,06,326/-.

3. Shri M. Anbualagan, learned Counsel appearing for the respondent company filed a detailed counter and submitted that the respondent company was incorporated under the Companies Act, 1956 having registered office at No.3 Local Shopping Centre, Pushpavihar, New Delhi-62 and denied the allegations contained in the application. The learned Counsel for the respondent submitted that the application is not maintainable either under law or on facts and the same is liable to be dismissed in limini. He submits that the registered office of the Company is situated at Delhi as such this Bench (Southern Region Bench) does not have any territorial jurisdiction to entertain this application. The application has been purportedly filed under the provisions of section 45QA of the RBI Act, 1934 (Amendment 1997). The provisions of section 45QA of the Act can be invoked only in the case of a "deposit" accepted by a non-banking financial company. On plain reading of the application it is established that the subject matter does not pertain to a deposit as such it is not sustainable and is liable to be dismissed.

4. It is a fact that the applicant having availed a sanctioned loan of Rs.4,00,000/- from the respondent company in June 2002 vide loan agreement No.870944 which the applicant liable to repay along with interest thereupon by way of equated monthly instalments. As per the terms of the agreement, mutually agreed upon between the applicant and the respondent company the said loan amount was to be repaid along with interest computable at the rate of 22% per annum. The applicant has foreclosed the said loan. The contention of the applicant that the respondent assured that after payment of 15 instalments the instalment amount would be reduced and the interest would be charged at the rate of 9% per annum is totally false and devoid of any merit. On the contrary it is against the written stipulations as envisaged in the loan agreement executed between the applicant and the respondent company. In view of the reasons the application is devoid of merits and liable to be dismissed.

5. Heard the learned Counsel for the parties and perused the pleadings and documents supported thereof. The main grievance of the applicant is that the respondent company had collected excess interest in violation of the provisions of the RBI Act. Th