Disposed

Awadhesh Rai v. the State of U P and 2 Others

Allahabad HC2 Apr 2019WRIC/11193/2019

Case brief

AI extract

What is this about?

The Court disposed of the writ petition seeking quashing of a bank demand notice on an admitted loan default. It directed the petitioner to repay the amount in five installments while mandating the bank to provide a clear, simplified account statement balancing interest calculations.

What did the court decide?

Petitioner directed to deposit loan amount in five installments; bank to provide simplified account statement within two weeks of first installment.

Awadhesh Rai Vs the State of U P and 2 Others — Banking and Recovery | Allahabad HC (2019)

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Court No. - 28

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Case :- WRIT - C No. - 11193 of 2019

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Petitioner :- Awadhesh Rai Respondent :- The State Of U P And 2 Others Counsel for Petitioner :- Sanjay Kumar Srivastava Counsel for Respondent :- C.S.C.,Ganesh Shanker Srivastava

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Hon'ble Rohit Ranjan Agarwal,J.

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Heard Shri Sanjay Kumar Srivastava, learned counsel for the petitioner, Standing Counsel for respondent Nos.1 and 2 and Shri Ganesh Shanker Srivastava, counsel for the respondent-bank.

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With the consent of learned counsel for the parties, this writ petition is being finally disposed of at this stage without calling for a counter affidavit.

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By this writ petition, the petitioner has prayed for quashing demand notice/citation dated 18.02.2019 for Rs.5,25,652/- plus other charges.

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The petitioner had taken a loan for agricultural purpose. It is admitted to the petitioner that a default has been committed by the petitioner in making timely repayments of that loan. Consequently, recovery proceedings have been initiated against him.

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Learned counsel for the petitioner submits that the petitioner is ready to deposit the entire recovery amount within the time fixed by this Court.

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Learned counsel appearing for the bank fairly states that the bank is interested in realizing the entire amount alongwith interest. If the petitioner deposits the amount within the time allowed by this Court, no further action shall be taken against the petitioner by the bank.

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On the facts and circumstances of the case and in the interest of justice, the writ petition is disposed of with the following directions:

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(i) The petitioner shall deposit the entire amount due to the bank in five installments beginning from 02.5.2019.

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(ii) By way of first installment, the petitioner shall deposit

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Rs. 1,25,000/- on or before the date 02.5.2019.

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(iii) On depositing the aforesaid amount of Rs. 1,25,000/-, the respondent bank shall provide a statement of account to the petitioner within two weeks thereafter disclosing the exact amount disbursed by the bank as loan; exact amount/s repaid by the petitioner together with dates of deposit; rate of interest and amount/s of interest charged by the bank. Such statement be expressed in such terms/language as may be easy to comprehend even by a lay-man such as the petitioner.

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(iv) The bank shall in the statement so supplied, itself calculate & indicate the amount/s of each installment together with the date of payments due.

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(v) Thus, the balance amount so indicated by the bank shall be deposited by the petitioner through the remaining four equal quarterly installments from 02.8.2019 onwards.

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(vi) If the entire amount is deposited by the petitioner as directed above, no recovery charge shall be realized from the petitioner.

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(vii) In case of default of the conditions as mentioned above, the present order shall stand automatically vacated and recovery proceedings shall revive from that stage.

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Order Date :- 2.4.2019 A.N. Mishra

Awadhesh Rai v. the State of U P and 2 Others

Case brief

What is this about?

What did the court decide?

Awadhesh Rai v. the State of U P and 2 Others

Case brief

What is this about?

What did the court decide?

What the court decided

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