Disposed

M/S Shri Hari Tiffin Services and Another v. State of U.P. and 4 Others

Allahabad HC8 Mar 2019WRIC/8029/2019

Case brief

AI extract

What is this about?

The High Court disposed of a writ petition challenging recovery proceedings by granting liberty to the petitioner bank to deposit the outstanding loan amount in installments. The recovery proceedings were kept in abeyance pending compliance, with stipulations regarding account statements, objections, release of attached property, and consequences of default including dismissal of the petition and

What did the court decide?

Recovery proceedings kept in abeyance; liberty granted to deposit outstanding amount in installments with stipulated timelines and conditions; attached property to be released upon first installment p

M/S Shri Hari Tiffin Services and Another Vs State… — Service and Employment | Allahabad HC (2019)

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Court No. - 34

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Case :- WRIT - C No. - 8029 of 2019

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Petitioner :- M/S Shri Hari Tiffin Services And Another Respondent :- State Of U.P. And 4 Others Counsel for Petitioner :- Alok Kumar Srivastava Counsel for Respondent :- C.S.C.,Nimai Dass

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Hon'ble Sudhir Agarwal,J. Hon'ble Rajendra Kumar-IV,J.

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Sri Alok Kumar Srivastava, learned counsel for petitioners, Sri R.N. Kesari, Advocate appearing for respondents-4 and 5 and learned Standing Counsel appearing for respondents- 1, 2 and 3. Challenge in this petition is recovery proceeding.

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Learned counsel for petitioners has made statement at the bar that this is the first writ petition against the recovery proceeding and this fact has also been stated in the writ petition. Petitioners have taken loan of Rs. 2,02,000/- in the year 2016. According to petitioners they could not pay entire amount due to unavoidable circumstances, as stated in the writ petition, on account of which entire payable amount up to the period of last instalment, which is huge one to the tune of Rs. 2,22,200/- etc. is sought to be recovered by adopting coercive methods including the attachment and arrest. Submission is that if reasonable time is allowed to pay the amount sought to be recovered, petitioners may be able to pay the same. Learned counsel for the petitioners, on instructions, also gave an undertaking that in case, petitioners are allowed to pay amount under recovery in some easy instalments and if any default is committed, petitioners shall pay a cost of Rs. 15,000/- over and above the amount, which remains to be recovered from the petitioners and the writ petition may be deemed to be dismissed in that event.

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To the aforesaid, learned Standing Counsel appearing for respondents-State submits that although in some of the cases it has been said that against recovery proceedings unless some illegality is pointed out Court may not interfere but at the same time submission is

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that intention of respondents has been never to cause any irreparable injury to the loanee rather the loan amount was advanced with purpose to improve petitioners' future prospects and thus if for justifiable reason the amount in terms of the agreement has not been paid and now petitioners have bona fide intention to pay amount within a reasonable time then if that liberty is given, it will serve the interest of both sides i.e. petitioners may be saved from the rigours of coercive process i.e. arrest, auction of the properties etc. and at the same time respondent-bank will get its full amount with interest. Thus for grant of reasonable time, if that is to advance justice, respondents may not have any objection.

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In view of aforesaid, this Court feels in the ends of justice that amount sought to be recovered be permitted to be deposited in the following manner, which will protect loanee from depriving of immovable/movable properties causing irreparable loss to the family which is to occasion on account of coercive process and at the same time, concerned Bank will also get its amount.

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At this stage without challenging correctness of amount sought to be recovered a prayer has been made that if amount sought to be recovered is permitted to be deposited in easy instalments, deposit of entire amount can be made.

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Accordingly, this petition is disposed of with the agreement of learned counsels for the parties with following directions: -

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i) Petitioners may deposit entire amount sought to be recovered directly in concerned Bank in four instalments as provided hereinbelow.

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ii) The petitioners shall deposit first instalment of a sum of Rs. 55,000 /- with the Bank by 31^st May, 2019.

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iii) Petitioners may file an application for supply of statement of account along with duly stamped self addressed envelope within one week of the deposit of first instalment. In case any such application is filed, the concerned branch of the Bank will give the same to petitioners after deposit of first instalment within fifteen days.

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iv) The petitioners thereafter if finds anything wrong in the statement of accounts, may file their objection within 15 days, which shall be considered and decided by the Bank within one month from the date of receipt of such objection, if any.

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v) In case petitioners do not file any objection, the entire rest amount shall be paid by him within 9 months in three equal quarterly instalments from the date he received the statement of accounts from the Bank.

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vi) If petitioners file any objection, then they shall pay the rest amount as per the communication of the Bank within nine months in three equal quarterly instalments commencing from the date of communication of order of Bank passed on their objection.

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vii) During period of deposition, recovery proceedings will be kept in abeyance. In case petitioners default in depositing any of instalments within stipulated time, this writ petition shall stand dismissed with a cost of Rs. 15,000/-, which shall also be recoverable as arrears of land revenue in addition to the amount sought to be recovered from the petitioners, and it will be open to the respondents to start recovery proceedings again by taking coercive process at once to which the petitioners undertakes not to challenge.

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viii) This order will not affect any auction, if it has already taken place. In that event petitioners may take appropriate legal proceedings to set aside the auction under U.P. Z.A. & L.R. Act and Rules, 1952 or file a suit in accordance with law.

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ix)It is clarified that this order will not be operative and will not come in way of recovery process in any manner, if any other writ petition has been filed before this Court against the recovery proceeding for the loan amount.

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x) Property belonging to petitioners, attached if any, will be released by the concerned Tehsil authority (unless it has been auctioned) after deposit of first instalment.

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xi) If any fact given from the side of petitioners is found to be incorrect by bank authorities, it will be open for them to move an application for modification/recall of the order.

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xii) The petitioners shall also pay cost of recovery charges and up to date interest along with the last instalment, which shall be communicated by the Bank at least 15 days before the date of payment of the last instalment.

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With these directions, the writ petition stands disposed of.

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Order Date :- 8.3.2019 Siddhant Sahu

M/S Shri Hari Tiffin Services and Another v. State of U.P. and 4 Others

Case brief

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M/S Shri Hari Tiffin Services and Another v. State of U.P. and 4 Others

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