Disposed

Raghuraj Singh and 2 Others v. State of U.P. and 2 Others

Allahabad HC4 Feb 2021WRIC/2591/2021

Case brief

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What is this about?

The High Court directed the Court No. - 37 to stay recovery proceedings against petitioners who defaulted on a farm loan. The court ordered a one-time deposit of Rs. 50,000 and subsequent quarterly repayments, stipulating that default would immediately revive the proceedings.

What did the court decide?

Stay on recovery proceedings granted subject to a deposit of Rs. 50,000 and payment of the outstanding amount in six quarterly installments.

Raghuraj Singh and 2 Others Vs State of U.P. and 2… — Banking and Recovery | Allahabad HC (2021)

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Court No. - 37

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Case :- WRIT - C No. - 2591 of 2021

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Petitioner :- Raghuraj Singh And 2 Others Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Kamlesh Tiwari,Gyan Prakash Tiwari Counsel for Respondent :- C.S.C.,Satish Chaturvedi

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Hon'ble Rajiv Joshi,J.

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Heard Sri Kamlesh Tiwari, learned counsel for the petitioners, learned Standing Counsel for the State respondents and Sri Pankaj Srivastava, learned counsel for the respondent-Bank.

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The petitioners availed the facility of loan from the respondentbank and admittedly, there was a default.

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Learned counsel for the petitioners submits that they had taken K.C.C. loan for purchasing tractor for agricultural purposes. The petitioners are farmers. They could not repay the loan instalments in time.

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Sri Pankaj Srivastava, learned counsel for the respondent-Bank submits that there is outstanding amount of Rs. 5,31,569/against the petitioner.

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Learned counsel for the petitioners further contends that he does not intend to contest the proceedings on merit and he is ready and willing to liquidate the entire outstanding liability provided he is permitted to do so in instalments.

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Learned Counsel for the respondent-Bank submits that he does not have any serious objection to the aforesaid submission. He, however, submits that the petitioners should prove their bonafide and ability to pay by depositing some amount within a month.

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Before proceeding to consider the prayer granting instalment, the petitioners is an under obligation to establish his bona-fide that not only he is ready but also in a position to clear off the entire dues.

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In view of the submissions made by learned counsel at the Bar, the recovery proceedings against the petitioners shall remain stayed subject to the following conditions:

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The petitioners shall deposit a sum of Rs. 50,000/- (Rupees Fifty Thousands) within a period of a month from today before

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the respondent Bank. On depositing the aforesaid amount, the bank shall provide a statement of account within two weeks from the date of deposit after adjusting the amount, if any, already deposited by the petitioners. The outstanding amount shall be deposited by the petitioners in six quarterly installments.

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First instalment be paid on or before 04.06.2021 and thereafter within every three months. The amount shall be deposited by the petitioners in the bank.

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

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In case of default in any of the conditions as mentioned above, the present order shall stand automatically vacated and recovery proceedings shall revive.

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The writ petition is disposed of.

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Order Date :- 4.2.2021 Noman

Raghuraj Singh and 2 Others v. State of U.P. and 2 Others

Case brief

What is this about?

What did the court decide?

Raghuraj Singh and 2 Others 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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