Allowed

Murari Lal v. State of U.P. and Another

Allahabad HC9 May 2022WRIC/12319/2022

Case brief

AI extract

What is this about?

The High Court disposed of the petitioner's writ petition regarding default on a bank loan by allowing repayment of the principal and interest in ten installments, with the first due by June 15, 2022, and prohibiting further penalties upon compliance.

What did the court decide?

Petitioner directed to deposit loan amount with interest in ten installments; recovery barred upon compliance; penalty charges waived.

Murari Lal Vs State of U.P. and Another — Contract and Commercial Disputes | Allahabad HC (2022)

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Court No. - 38

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Case :- WRIT - C No. - 12319 of 2022

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Petitioner :- Murari Lal Respondent :- State of U.P. and Another Counsel for Petitioner :- Vishwa Nath Mishra Counsel for Respondent :- C.S.C.,Yashwant Singh

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Hon'ble Saumitra Dayal Singh,J.

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Heard Sri Vishwa Nath Mishra learned counsel for the petitioner, Sri Yashwant Singh learned counsel for the respondent Bank and the learned Standing Counsel for the State respondents.

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2.At present the petitioner has approached this Court with respect to default committed in repayment of one of the two loans obtained by him. Thus, the petitioner has approached the Court with respect to default of Rs. 5,54,133/- as on 30.9.2021 together with due interest arising from one loan of Rs. 3,00,000/- obtained by him.

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Learned counsel for the respondent Bank informs that there is another default committed by the petitioner with respect to another loan of equal amount of Rs. 3,00,000/-. Therein Rs. 5,65,086/- is being claimed from the petitioner as on 31.3.2021 together with due interest and other charges.

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Upon hearing learned counsel for parties, present order is being passed with respect to first loan described above wherein Rs. 5,54,133/- as on 30.9.2021 is being claimed from the petitioner.

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Learned counsel for the petitioner states that a loan has been availed by the petitioner for agricultural purposes. Owing to unforeseen circumstances, the petitioner could not repay the debt. In any case the petitioner is desirous of liquidating his entire liability subject to latitude of time being granted.

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In such circumstances, no useful purpose may be served in keeping the petition pending or for calling counter affidavit. Accordingly the present petition is disposed of with the consent of parties on the following terms:

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(i). The petitioner may deposit the entire amount of Rs. 5,54,133/- together with due interest in ten installments.

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(ii) The first installment of Rs. 1,54,133/- shall be paid on or before 15 June 2022.

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(iii) Upon deposit of Rs.1,54,133 /- by the petitioner, the respondent - Bank shall immediately communicate to the petitioner the exact amount being claimed from him including interest computation up to 31 August 2024 (on reducing balance).

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(iv) Petitioner shall thereafter deposit the remaining amount in eight equal installment of Rs. 50,000 /- each shall be paid on or before 30 September 2022, 31 December 2022, 31 March 2023, 30 June 2023, 30 September 2023, 31 December 2023, 31 March 2024 and 30 June 2024, respectively. The amount of interest (if any) being claimed by the respondent - Bank may be paid, by way of last installment, on or before 30 September 2024.

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(v) Any amount that may have been deposited by the petitioner pursuant to the impugned demand notice, may be adjusted against the deposit to be made under this order.

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Subject to the petitioner complying with all the terms of this order, no further amount may be charged by the bank and no amount shall become due by way of penalty or recovery charges as the entire amount would have been paid in compliance of directions issued under Article 226 of the Constitution.

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

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Order Date :- 9.5.2022 Faraz

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Digitally signed by FARAZ AHMAD Date: 2022.05.09 16:09:48 IST Reason: Location: High Court of Judicature at Allahabad

Murari Lal v. State of U.P. and Another

Case brief

What is this about?

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Murari Lal v. State of U.P. and Another

Case brief

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