H.P.STATE FIN.CORPN. vs PREM NATH NANDA

The Supreme Court held that under Section 29 of the State Financial Corporations Act, 1951, a respondent-loanee is entitled to interest at the rate of 13% on the excess amount refunded after the sale of his industrial unit. The Court affirmed the High Court's decision to grant interest, rejecting the appellant-Corporation's claim that it was not liable for interest due to the pendency of a writ petition. The judgment reinforced the principle that a borrower is entitled to interest on amounts refunded in excess of their liability.