prepayment at the rate of 1% on
working capital limit plus GST.
4.4) The petitioner objected to such levy
of prepayment charges vide letter dated ... petitioner has paid the
charges, the petitioner has no right to make
any grievance for levy of penal charges for
prepayment of loan and hence
petitioner created by deposit of title deeds
without demanding prepayment charges / foreclosure
charges and to issue 'No Objection Certificate' in favour of
AXIS ... prepayment is from the individual
sources, the rate applicable is lower and when the
prepayment is by any another financial institution, the
prepayment charges
issued by
the Reserve Bank of India by which foreclosure charges /
prepayment penalties of term loan sanctioned to individual
borrowers were ordered to be foregone ... total amount of Rs.51,60,89,236/- including the prepayment
charges to the tune of Rs.1,12,55,885/- since
Deposit taking
Company (Reserve Bank) Directions, 2016 on
waiver of foreclosure charges/ prepayment
penalty on all floating rate term loans
sanctioned to individual borrowers ... said that
the petitioners are entitled to get waiver of
prepayment charges as per the RBI notification
dated 14th July, 2014.
15. The RBI notifications
granted the permission for the full
prepayment of outstanding amount along with the consequent
prepayment charges with a ceiling on the latter. The petitioner company ... requesting the modification in the permission for
ceiling on such prepayment charges. It has been submitted that the
Page 6 of 15
HC-NIC Page
appropriate writ, order or direction, holding and declaring
that the 0.50% prepayment charges recovered by the respondent Bank
from the petitioner company is totally illegal ... because the petitioner had, while availing loan
facility, agreed to pay prepayment charges, processing charges,
agreed rate of interest etc. and also because the matter
which was the amount collected by
respondent No.1 bank towards prepayment charges of loan repaid by the
petitioner. The submission of the petitioners
page 10,
i.e. the document which contains clause "Prepayment
Charges" which reads as under:
"In Term Loan Account prepayment premium ... loan, amount prepaid by the company, residue
period of loan and the charges recovered.
3. This Court finds no error having been committed
interest,
compound interest, additional interest, liquidated damages, premia on
prepayment or on redemption, costs, charges, expenses and other
monies payable by the company to IDBI ... together with interest, additional
interest, liquidated damages, premia on prepayment, or on redemption
cost, charges, expenses and all other monies payable by the company
Page 4 of 8
C/SCA/5948/2015 ORDER
payment charges as applicable, shall be payable
in case of prepayment of term loan
installments ... Circular dated
27.05.2014, which provides as under:
"Levy of foreclosure charges/prepayment penalty on
Floating Rate Term Loans
Please refer to out circulars
