A farmer-petitioner sought a stay on bank recovery proceedings due to loan default. The court granted a stay conditioned on an immediate deposit of one lakh and subsequent repayment in quarterly instalments over six quarters.
Stay on recovery proceedings granted subject to deposit of Rs. 1,00,000/- and repayment in six quarterly instalments.
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Court No. - 37
Case :- WRIT - C No. - 404 of 2021
Petitioner :- Sattar Khan Respondent :- State Of U.P. And 4 Others Counsel for Petitioner :- Vatsala Counsel for Respondent :- C.S.C.,Manoj Nigam
Hon'ble Rajiv Joshi,J.
Heard Sri Vatsala, learned counsel for the petitioner and Sri Manoj Nigam, learned counsel for the respondent- Bank.
The petitioner availed the facility of loan from the respondent-bank and admittedly, there was a default. The respondent bank issued a recovery citation of Rs. 6,60,430/- against the petitioner.
Learned counsel for the petitioners submits that he had taken loan for purchasing tractor for agricultural purposes. The petitioner is a farmer. He could not repay the loan instalment in time.
Learned counsel for the petitioner 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.
Sri Manoj Nigam, learned counsel for the respondent-Bank does not have any serious objection to the aforesaid submission. He, however, submits that the petitioner should prove their bonafide and ability to pay by depositing some amount within a month.
Before proceeding to consider the prayer granting instalment, the petitioner 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.
In view of the submissions made by learned counsel at the Bar, the recovery proceedings against the petitioner shall remain stayed subject to the following conditions:
within every three months. The amount shall be deposited by the petitioner in the bank. If the entire amount is deposited by the petitioner as directed above, no recovery charge shall be realized from the petitioner. In case of default in any of the conditions as mentioned above, the present order shall stand automatically vacated and recovery proceedings shall revive.
The writ petition is disposed of.
Order Date :- 25.1.2021 Noman
1 issue framed by the court
Whether the petitioner is eligible to obtain a stay on recovery proceedings in lieu of repayment in instalments?
Sattar Khan
State Of U.P.
Rajiv Joshi
As recorded by the court registry
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