Beyond the aforesaid, this is an owner's loan to a company that has been agreed upon for business considerations, and the municipality should not be obligated to make this business speculation.
At the same time, given the bad faith conduct on the part of the Municipality, which concealed material information from the Company, information that could have influenced its decision whether to continue or cancel the agreement, and in practice enriched itself at the Company's expense when it held in its coffers a sum of approximately ILS 5 million belonging to the Company, I see fit to continue to charge the Municipality with interest payments as required by law from the date of signing the agreement until the date of the actual payment according to the judgment, as compensation to which the Company is entitled due to the Municipality's bad faith conduct.
"Fine" you paid for extending the validity of the loan
- The company argued that in order to finance the loan provided by plaintiff 3 to the company, plaintiff 3 took Hallelujah from a third party, Benny & Zvika Ltd., and referred to a loan agreement dated April 2,2016, according to which plaintiff 3 was supposed to repay the loan in March 2017, but this was not possible due to the conduct of the municipality, which deceived the company for a long period of time (paragraph 10 of the affidavit of Bnei David); Therefore, it was argued, plaintiff 3 was forced to extend the loan period, in exchange for a payment of ILS 300,000 per year, while as of the date of filing the lawsuit, plaintiff 3 was forced to extend the loan several more times for a total of ILS 300,000 per extension year, so that in the end the payment for the loan extension accumulated (until the date of filing the claim) to a sum of ILS 1.5 million. (The statement of claim claims ILS 1.2 million) (see paragraphs 10-11 of the affidavit of the sons of David; documents for extensions of the loan agreement - P/9 (David) - P/10 (David)).
Accordingly, Benny David noted in his affidavit (paragraph 12): "It is important to note that if it were not for the misleading representations of the municipality, as if the transaction would be approved by the Minister of the Interior after the change in the zoning plan, we would not have extended the loan and incurred unnecessary expenses."