Shivpoojan Vs State of U.P. and 2 Others — Writ and Judicial Review | Allahabad HC (2022)

Shivpoojan Vs State of U.P. and 2 Others — Writ and Judicial Review | Allahabad HC (2022)

What the court decided

AI extract

Outcome

Writ petition disposed of with consent of parties: petitioner permitted to deposit Rs. 2,44,005/- together with due interest directly with the respondent-Bank in six installments (Rs. 44,005/- by 30 June 2022; four equal quarterly installments of Rs. 50,000/- each by 30 September 2022, 31 December 2022, 31 March 2023 and 30 June 2023; any interest claimed by way of last installment on or before 30 September 2023). Upon deposit of Rs. 50,000/- the Bank to communicate the exact claim including interest computation up to 30 June 2023 on reducing balance. Deposits made under the impugned recovery citation adjustable. Subject to full compliance, no penalty or recovery charges; on default the order stands automatically vacated and recovery proceedings revive.

Issue for consideration

Challenge to the recovery citation issued by the respondent-Bank claiming Rs. 2,44,005/- together with due interest and other charges against a loan of Rs. 2,02,000/- availed by the petitioner. +1 more

Court's answer

The petition is disposed of with the consent of parties, permitting the petitioner to deposit the entire amount of Rs. 2,44,005/- together with due interest directly with the respondent-Bank in six installments.

Ratio / Principle

The first installment of Rs. 44,005/- is to be paid on or before 30 June 2022.

Key takeaways

Upon deposit of Rs. 50,000/- by the petitioner, the respondent-Bank shall immediately communicate the exact amount claimed from him including interest computation up to 30 June 2023 (on reducing balance).ratio¶11
The petitioner shall deposit the remaining amount in four equal quarterly installments of Rs. 50,000/- each, payable on or before 30 September 2022, 31 December 2022, 31 March 2023 and 30 June 2023 respectively.ratio¶12

Detailed headnote1 paragraphs

Allahabad High Court (Saumitra Dayal Singh, J.) disposed of, with the consent of parties, a writ petition under Article 226 of the Constitution challenging a recovery citation issued by the respondent-Bank against the petitioner Shivpoojan, claiming Rs. 2,44,005/- with interest and other charges on an agricultural loan of Rs. 2,02,000/-. The petitioner was permitted to deposit Rs. 2,44,005/- with due interest directly with the Bank in six installments: Rs. 44,005/- on or before 30 June 2022, followed by four equal quarterly installments of Rs. 50,000/- each on or before 30 September 2022, 31 December 2022, 31 March 2023 and 30 June 2023, with any interest claimed payable by way of the last installment on or before 30 September 2023. Upon deposit of Rs. 50,000/-, the Bank was to communicate the exact amount claimed including interest computation up to 30 June 2023 on reducing balance. Amounts deposited under the impugned recovery citation were made adjustable. Subject to full compliance, no further amount, penalty or recovery charges were to be levied; in case of default, the order stands automatically vacated and recovery proceedings revive from that stage. Order dated 17.5.2022.

Court No. - 38

Case :- WRIT - C No. - 14075 of 2022

Petitioner :- Shivpoojan Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Pradeep Kumar,Piyush Patel Counsel for Respondent :- C.S.C.,Satish Chaturvedi

Hon'ble Saumitra Dayal Singh,J.

Heard learned counsel for the parties.

Challenge has been made to the recovery citation issued against the petitioner by the respondent-Bank. Against a loan of Rs. 2,02,000/-, the bank is claiming Rs. 2,44,005/- to be due against the petitioner together with due interest and other charges.

At the outset learned counsel for the petitioner states that loan of Rs. 2,02,000/- has been availed by the petitioner for agricultural purpose. Owing to unforeseen circumstances, the petitioner could not repay the loan. In any case, the petitioner is desirous of liquidating his entire liability subject to latitude of time being granted. The bank has agreed to the same.

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:

(i). The petitioner may deposit the entire amount of Rs. 2,44,005/- together with due interest directly with the respondent-Bank in six installments.

(ii) The first installment of Rs. 44,005/- shall be paid on or before 30 June 2022.

(iii) Upon deposit of Rs. 50,000/- by the petitioner, the respondent - Bank shall immediately communicate to the petitioner the exact amount being claimed from him including interest computation up to 30 June 2023 (on reducing balance).

(iv) Petitioner shall thereafter deposit the remaining amount in four equal quarterly installment of Rs. 50,000/- each, which shall be paid on or before 30 September 2022, 31 December 2022, 31 March 2023 and 30 June 2023 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 2023.

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

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.

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.

Order Date :- 17.5.2022 Prakhar

Digitally signed by PRAKHAR SRIVASTAVA Date: 2022.05.17 17:28:25 IST Reason: Location: High Court of Judicature at Allahabad