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5. Learned counsel for the applicant submitted that as the applicant failed to utilize the House Building Advance for period from October'83 to Feburary'84 i.e. for five month only, the respondents have deducted Rs.6358/- instead of Rs.546/- only.

6. Learned counsel for the respondents, Shri Doctor, however, submitted that the applicant's was granted HBA which was to be utilized within prescribed time limit and applicant was also required to submit the mortgage deed and insurance policy within stipulated period. The applicant was granted time upto 31-10-83, but the applicant failed to submit the documents, so a penal interest @ of 2.75% till the submission of mortgage deed was imposed upon the applicant. The learned counsel has placed reliance on the Financial Department's GR No.21/AG/91, dated 20-8-91 of Gujarat Financial Rules. According to which, the penal interest on HBA amounting to Rs.6358/- was recovered from the applicant. The submission is that penal interest is not only because of non utilisation of HBA amount within prescribed time, but also because of non submission of mortgage deed.