Himachal Pradesh State Financial ... vs Prem Nath Nanda & Ors.

The Supreme Court held that under Section 29 of the State Financial Corporations Act, 1951, a borrower is entitled to interest on the excess amount refunded after the sale of the secured asset. The Court affirmed the High Court's decision to grant interest at the rate of 13%, which was the rate charged on the loan, despite the appellant-Corporation's claim that it did not earn interest on the excess amount. The Court concluded that the delay in refunding the excess amount was not a valid reason to deny interest to the respondent-loaner.