Disposed

Mahesh and Another v. State of U.P. and 3 Others

Allahabad HC20 Apr 2018WRIC/14408/2018

Case brief

AI extract

What is this about?

This order disposed of a writ petition assailing a recovery citation for an agricultural loan. The court directed deposit of dues in quarterly installments, suspended recovery proceedings, released attached properties after initial payment, and deferred determination of collection charges.

What did the court decide?

Recovery proceedings kept in abeyance pending deposit of loan amount in 8 quarterly installments; attached property to be released after first installment.

Mahesh and Another Vs State of U.P. and 3 Others — Banking and Recovery | Allahabad HC (2018)

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Court No. - 33

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Case :- WRIT - C No. - 14408 of 2018

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Petitioner :- Mahesh And Another Respondent :- State Of U.P. And 3 Others Counsel for Petitioner :- Rajeev Kumar Rai Counsel for Respondent :- C.S.C.,Arvind Srivastava

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Hon'ble Manoj Misra,J.

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Heard learned counsel for the petitioners; learned Standing Counsel for respondents 1, 2 and 3 and Sri A.K. Dubey holding brief of Sri Arvind Srivastava for respondent no.4.

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The present petition has ben filed assailing the recovery citation dated 8th September, 2017, issued by Tehsildar, Sikandara, Bulandshahar for recovery of Rs.6,05,491/- plus interest and charges from the petitioners towards the agricultural loan availed by the petitioners from the respondent-bank.

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Counsel for the petitioners does not dispute the amount which is sought to be recovered from him.

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Admittedly, the petitioners took loan from the respondentBank concerned out of which petitioners have not paid substantial amount. Petitioners submit that they are ready to deposit whole of the amount in easy installments. Counsel for the Bank states that the anxiety of the Bank is that the amount is recovered back.

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Accordingly this petition is disposed of with the following directions:

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(i) Petitioners may deposit the entire amount sought to be recovered directly in concerned Bank in 8 quarterly installments.

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(ii) The first installment shall be deposited by 15.05.2018 and the rest of installments shall be deposited at intervals of three months thereafter. These deposits shall be made with the Branch of the Bank from where the loan was taken.

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(iii) Recovery proceedings during this period will be kept in abeyance. In case petitioners commit default in depositing any of the installments within the above stipulated time, it will be open to the respondents to start the recovery proceedings again by taking coercive process to which the petitioners undertake not to challenge.

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(iv) Petitioners may file an application for supply of statement of account along with the duly stamped self addressed envelope. In case any such application is filed, the concerned branch of the Bank will give the same to the

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petitioners after deposit of the first installment within fifteen days and in calculating the arrears, the amount (if any) already paid will be adjusted.

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(v) Property (agricultural land/tractor) belonging to the petitioners, if attached, in connection with recovery proceedings, will be released by the concerned Tehsil authority (unless it has already been auctioned) after deposit of first installment. However, unless the property has already been auctioned, no third property right shall be created by the petitioner in either mortgaged or hypothecated property till entire bank dues are cleared.

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(vi) If the installments are deposited as per the schedule fixed in this order, the recovery of collection charges would remain in abeyance till such time the Collector takes a decision and determines the collection charges/fee payable as per the legal provisions and in the light of Full Bench decision of this Court in the case of Maharajwa and others versus State of U.P. and others, reported in 2013(1) ADJ 426 (FB). Upon determination of collection charges/fee the Collector will communicate the same to the petitioners upon which the petitioners would either deposit the same within a period of 30 days or, if not satisfied, would be at liberty to assail the same in appropriate proceedings.

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Order Date :- 20.4.2018. Rks.

Mahesh and Another v. State of U.P. and 3 Others

Case brief

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Mahesh and Another v. State of U.P. and 3 Others

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