Allowed

M/S Star Loh and Kastha Kala Udyog and Another v. State of U.P. and 3 Others

Allahabad HC7 Jan 2021WRIC/20847/2020

Case brief

AI extract

What is this about?

The High Court disposed of the writ petition filed by loan defaulters against a recovery citation and recovery proceedings. The Court directed the petitioners to deposit 25% immediately followed by five equal installments for the full amount. Upon compliance, the bank must provide a detailed account, granting no recovery charges.

What did the court decide?

Withdrawal of recovery citation under directed installment payment plan of six equal monthly payments, subject to banking transparency.

M/S Star Loh and Kastha Kala Udyog and… — Contract and Commercial Disputes | Allahabad HC (2021)

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Court No. - 39

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Case :- WRIT - C No. - 20847 of 2020

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Petitioner :- M/S Star Loh And Kastha Kala Udyog And Another Respondent :- State Of U.P. And 3 Others Counsel for Petitioner :- Manoj Kumar Patel Counsel for Respondent :- C.S.C.,Habib Ahmad

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

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Heard Shri Manoj Kumar Patel, learned counsel for the petitioners, Shri Habib Ahmad, learned counsel appearing on behalf of respondent Nos. 2 and 3 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 impugned recovery citation dated 24.9.2020 issued by the Tehsildar/Assistant Collector, Tehsil Etawah, district Etawah.

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Issue a writ order or direction in the nature of mandamus directing the respondents to reschedule the loan amount due against the petitioner and fix an easy installments.

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Issue a writ, order or direction in the nature of mandamus directing the respondent-bank to permit the petitioner to sale the loan property with condition."

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At the outset, learned counsel for the petitioners submits that the petitioners are ready to deposit the amount as mentioned in the recovery citation dated 24.9.2020 in easy installments.

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Learned counsel appearing for the bank fairly submitted that the bank is interested in realizing the entire amount along with interest. If the petitioners deposits the amount within the time allowed by this Court, no further action shall be taken against the petitioners 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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The petitioners shall deposit the entire amount due to the bank in six equal installments.

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By way of first installment, the petitioners shall deposit 25% of the total amount on or before 10.2.2021.

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On depositing the aforesaid amount of 25% of the total amount, the respondent-bank shall provide a statement of account to the petitioners within two weeks thereafter disclosing the exact amount disbursed by the bank as loan, exact amount repaid by the petitioners together with dates of deposit, rate of interest and amount of interest charged by the bank.

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The bank shall in the statement so supplied, itself calculate and indicate the amount of each installment together with the date of payment due.

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Thus, the balance amount so indicated by the bank shall be deposited by the petitioners through the remaining five monthly installments.

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If the entire amount is deposited by the petitioners as indicated above, no recovery charge shall be realized from them.

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In case of default of the conditions as mentioned above, this order shall stand automatically vacated and recovery proceeding shall revive from that stage.

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The writ petition is disposed of in the above terms.

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Order Date :- 7.1.2021 Ishrat

M/S Star Loh and Kastha Kala Udyog and Another v. State of U.P. and 3 Others

Case brief

What is this about?

What did the court decide?

M/S Star Loh and Kastha Kala Udyog and Another v. State of U.P. and 3 Others

Case brief

What is this about?

What did the court decide?

What the court decided

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