Partly allowed

Manoj Kumar v. State of U.P. and 2 Others

Allahabad HC24 Apr 2019WRIC/12637/2019

Case brief

AI extract

What is this about?

This petition challenged a recovery order under U.P. Public Money (Recovery of Dues) Act, 1972, regarding a default on a bank loan. The Court held that the liability to repay public money is undisputed and cannot be shirked via statutory loopholes. Instead of quashing the order, the Court granted equitable relief by directing installment payment.

What did the court decide?

The impugned recovery citation deferred for six months. Petitioner directed to deposit outstanding dues in six equal monthly instalments, first by 24.5.2019.

Manoj Kumar Vs State of U.P. and 2 Others — Banking and Recovery | Allahabad HC (2019)

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Court No. - 39

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Case :- WRIT - C No. - 12637 of 2019

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Petitioner :- Manoj Kumar Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Pradeep Kumar Counsel for Respondent :- C.S.C.,Habib Ahmad

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Hon'ble B. Amit Sthalekar,J. Hon'ble Piyush Agrawal,J.

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Heard Sri Pradeep Kumar, learned counsel for the petitioner, Sri Habib Ahmad, learned counsel for respondent no.3 and learned standing counsel appearing for respondent nos. 1 and 2. The petitioner in the writ petition is seeking quashing of the order dated 14.2.2019 whereby recovery of an amount of Rs. 6,74,561/- is sought to be made from him.

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Briefly stated the facts of the case are that the petitioner took a loan of Rs. 4,50,000/- from the respondent Bank for purchasing a pickup vehicle. The loan was to be paid in seven years. Since the petitioner defaulted in regular payment of instalments, the said recovery citation has been issued.

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The contention of the learned counsel for the petitioner is that the said loan has not been granted under a State Sponsored Scheme, therefore it cannot be recovered under U.P. Public Money (Recovery of Dues) Act, 1972. Reliance has been placed to the Full Bench judgment of this Court in Sharda Devi vs. State of U.P. (2001 (3) UPLBEC 1941). We, however, find that taking of loan has not been disputed by the petitioner and, therefore, he is under an obligation to pay off the said loan, which is ultimately public money.

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We find that the relief claimed by the petitioner is in essentially one in equity. If he has taken a loan from a bank it is public money and he has to pay back the same. For this he must show his genuineness in paying back the loan amount. He cannot be allowed to resort to statutory loopholes to escape his liability to pay. Liability to pay is not disputed. The petitioner has knocked on the doors of this Court seeking discretionary equitable remedy under Article 226 of the Constitution of India.

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Learned counsel for the petitioner states that the petitioner will pay off the entire dues of loan if some easy instalments are fixed by this Court.

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We, therefore, dispose of the writ petition with a direction to the petitioner to deposit the entire outstanding dues of loan in six equal monthly instalments. The first instalment shall be paid by the petitioner on or before 24th May, 2019 and

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thereafter subsequent instalments shall be paid on or before 24th of each successive month.

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The impugned recovery citation dated 14.2.2019 shall stand deferred for a period of six months.

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In the event of default in depositing any of the instalments, the indulgence granted by this Court shall stand automatically vacated and thereafter the respondents shall be at liberty to proceed in accordance with law to recover the said amount from the petitioner.

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Order Date :- 24.4.2019 samz

Manoj Kumar v. State of U.P. and 2 Others

Case brief

What is this about?

What did the court decide?

Manoj Kumar v. State of U.P. and 2 Others

Case brief

What is this about?

What did the court decide?

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