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Abbas v. State Of U.P. And Others - WRIT - C No. 71639 of 2005 [2005] RD-AH 6100 (22 November 2005)


This is an UNCERTIFIED copy for information/reference. For authentic copy please refer to certified copy only. In case of any mistake, please bring it to the notice of Joint Registrar(Copying).


Hon. S. K. Singh, J.

Challenge in this petition is the recovery proceeding pursuant to the citation dated 30.9.2005.

There is no dispute about the fact the petitioner has taken a loan in the year 2000 and he has not paid a single penny so far. Submission is that petitioner is ready and willing to deposit an amount of Rs. 1 lakh within a period of two months from today and remaining amount within one year in quarterly instalments.

To the aforesaid, learned counsel appearing for Bank/Samiti submits that although in some of the cases it has been said that against the recovery proceedings unless some illegality is pointed out the court may not interfere but at the same time submission is that intention of the respondent bank has been never to cause any irreparable injury to the loanee rather the loan amount was advanced with the purpose to improve the petitioner's future prospects and thus if for justifiable reason the amount in terms of the agreement has not been paid and now petitioner has bonafide intention to pay the amount within a reasonable time then if that liberty is given, it will serve the interest of both sides i.e. petitioner may be saved from the riggers of coercive process i.e. arrest, auction of the properties and at the same time respondent bank will get its full amount with interest. Thus for grant of reasonable time, if that is to advance justice, respondents may not have any objection.

Petitioner is permitted to deposit an amount of Rs. 1 lakhs within a period of two months from today. The remaining amount will  be deposited thereafter in four quarterly instalments.  The first instalment may be deposited by 22nd April,  2006,  second instalment by 22nd July , 2006, third by 22nd October , 2006 and fourth by 22nd January, 2007. These deposits may be made before the branch of the Bank/Samiti from where the loan was taken. In case instalments are deposited in the Bank/Samiti then the recovery charges will not be recovered from the petitioner.

During  period of deposit  the recovery proceedings will be kept in abeyance. In case petitioner defaults in depositing any of the instalments within the above stipulated time, it will be open to the respondents to start recovery proceedings again by taking coercive process at once to which the petitioner undertakes not to challenge.

If any fact given from the side of the petitioner is found to be incorrect by the bank authorities, it will be open for them to move an application for modification/recall of  the order.

With the aforesaid writ petition stands disposed of.





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