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Bhagwan Deen And Otherrs v. State Of U.P. And Others - WRIT - C No. 4052 of 2007  RD-AH 2210 (12 February 2007)
Court no. 23
Civil Misc. Writ Petition No. 4052 of 2007
Bhagwan Deen and others.......................................Petitioners
State of U.P. and others.............................................Respondents.
Hon. S.N.Srivastava, J.
Challenge in this petition is to citation issued against the petitioners by which the Bank directed to seize the tractor as a fore closure vis-a vis the loan granted by the Bank.
The grievance of the learned counsel for the petitioner is that a sum of Rs. 3 lac was sanctioned to the petitioner on 13.3.2004 for purchase of tractor and the loan was made repayable in instalments. He further submitted that he deposited three instalments aggregating to Rs. 35000/- and thereafter, recurring drought condition prevailing in the area for the last three years, left the petitioner impoverished rendering him unable to repay the loan according to the schedule of the Bank and consequently, without any intimation or without affording an opportunity of hearing to the petitioner, the Bank resorted to the tactics of seizing the tractor besides taking other coercive measure in this regard.
I have heard learned counsel for the parties.
Learned counsel for the petitioner argued strenuously on certain points including the various aspects of loaning system and methods being employed for recovery of loans and further that the loan system prescribed for agricultural loan is more rigid qua the loan granted in cases other than agricultural loans.
Considering the seminal nature of arguments raised by the learned counsel for the petitioner, it is necessary to study over the system relating to loan and recovery being practiced in various banks, such as private Banks, Nationalized Banks and other Private financial bodies and in this connection, the Court thinks it necessary that some advocate may be appointed as amicus curie to assist the Court who it is provided will get counsel fee as per High Court Rules.
As prayed two weeks further time is granted to Sri Satish Chaturvedi learned counsel appearing for the State Bank of India, learned Standing counsel and also Sri Yashwant Verma, appearing for reserve Bank Of India. Thereafter, it is further provided, the learned counsel for the petitioner will have one week's further time to file rejoinder affidavit. In addition to reply to relevant paragraphs of the writ petition, learned counsel for the Opp. parties will also make necessary averments and bring relevant documents in answer to the following questions.
(1) Whether, a loanee applying for agricultural loan is supplied copy of the proposed terms and conditions before granting agricultural loan by the Nationalised Banks, private Banks and other Financial bodies,
(2) Whether in the agreement, loanee has any say in fixing terms and conditions of the agreement,
(3) Whether copy of the agreement duly signed by both the parties is supplied to loanee after loan is sanctioned,
(4) Whether there is any procedure prescribed under any relevant rules or circulars to explain the terms and conditions to rustic village person who is illiterate and has approached the Bank for Loan whose thumb impressions are anyhow obtained on the agreement the contents of which are in printed form describing terms and conditions either in English language or any vernacular language,
(5) What is the basis of fixing terms and conditions in the agreement.
(6) Whether loaned amount if sanctioned is paid to loanee or is directly transferred to Agent or dealer nominated by the Bank and is shown in the account of loanee or loanee has any choice to purchase any agricultural instrument which includes tractor, trolley etc from dealer or shop of his own choice.
(7) What is the rationale of mortgaging agricultural property in so far as agricultural loan is concerned apart from pledging tractor or trolley purchased through loaned amount though in case of other loans like car loan etc purchased properly alone is pledged without any mortgage of other property.
The Banks shall also file relevant Rules or directions issued by the Reserve Bank of India if any.
Interim order dated 25.1.2000 shall continue to hold good till further orders by this Court.
Let a copy of this order be supplied to learned Standing Counsel, Sri Satish Chaturvedi learned counsel for the Bank, Sri Yashwant Verma, learned counsel appearing for Reserve Bank of India, Sri K.S.Chauhan Amicus curie free of cost within three days.
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