Partly allowed

M/S Ragent Realcon Pvt. Ltd. v. State of U.P. and 2 Others

Allahabad HC5 Feb 2021WRIC/1358/2021

Case brief

AI extract

What is this about?

The Court disposed of a writ petition to quash recovery proceedings under the U.P. Cooperative Society Act. Upon the petitioner's readiness to pay the principal and interest excluding collection charges, the Court granted relief allowing installment payments and waived collection charges contingent on timely deposit.

What did the court decide?

Petitioner directed to deposit Rs. 10,00,000 within a month and balance in four quarterly installments within a year; collection charges waived if terms met.

M/S Ragent Realcon Pvt. Ltd. Vs State of… — Contract and Commercial Disputes | Allahabad HC (2021)

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Court No. - 39

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Case :- WRIT - C No. - 1358 of 2021

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Petitioner :- M/S Ragent Realcon Pvt. Ltd. Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Nipun Singh Counsel for Respondent :- C.S.C.,Abhishek Mishra

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Hon'ble Naheed Ara Moonis,J. Hon'ble Dinesh Pathak,J.

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Heard learned counsel for the petitioner, Shri Abhishek Mishra, learned counsel appearing on behalf of respondent-Bank and learned Standing Counsel representing the State.

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The instant writ petition has been filed seeking the following relief:

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"1. Issue a writ, order or direction in the nature of certiorari quashing the recovery proceedings initiated in pursuance of Recovery Certificate dated 12.5.2016 by respondent No. 3 against the petitioner as per section 91 of the U.P. Cooperative Society Act, 1965 as the petitioner is ready to pay the entire outstanding amount qua the interest, excluding penal/collection charges imposed by the petitioner.

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2. Issue a writ, order or direction in the nature of mandamus directing respondent No. 3 to forthwith produce the petitioner's current statement of account by excluding penal/collection charges, by permitting the petitioner to deposit the entire outstanding amount as per the statement of account to be produced by the bank, respondent No. 3 in easy installments, as may be directed by this Court."

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The submission of the learned counsel for the petitioner is that the petitioner is a company incorporated under the provisions of Companies Act, 1956. The petitioner was granted the facility of cash credit limit against its property for a sum of Rs. 45,00,000/- (Forty five lac only). The petitioner was continuously paying the regular interest without there being any default. However, as the petitioner-company suffered loss due to slow down of economy of the country, it could not deposit the interest for the month of March, 2016, which was later on paid by the petitioner. However, as there was certain delay in depositing the interest, the account of the petitioner was

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declared NPA, the proceeding has been initiated by the Bank and in pursuance thereof, the recovery certificate has been issued on 12.5.2016.

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Learned counsel for the petitioner further submits that the petitioner has already paid certain amount and it is ready to deposit the outstanding amount excluding the collection charges in easy installments

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Shri Abhishek Mishra, learned counsel appearing on behalf of the bank fairly submitted that the bank is interested in realizing the entire amount along with interest. He also submitted that if the petitioner is ready to deposit the amount within the specified period as fixed by this Court, the Collector shall not demand the collection charges from the petitioner.

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In this view of the matter, the writ petition is disposed of directing the petitioner to deposit Rs. 10,00,000/- (rupees ten lac only) within a month and remaining amount shall be deposited in four equal quarterly installments within a year. If the petitioner deposits the amount as specified above, no collection charge shall be realized from the petitioner.

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However, in case of any default in payment of installments, the recovery proceeding shall be revived from that stage in accordance with law.

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Order Date :- 5.2.2021 Ishrat

M/S Ragent Realcon Pvt. Ltd. v. State of U.P. and 2 Others

Case brief

What is this about?

What did the court decide?

M/S Ragent Realcon Pvt. Ltd. v. 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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