Research › Search › Judgment

Uttarakhand High Court · body

2005 DIGILAW 520 (UTT)

Sushil Kumar v. State Bank of India

2005-12-08

CYRIAC JOSEPH, RAJESH TANDON

body2005
JUDGEMENT Cyriac Joseph, C.J. 1. The challenge in this writ petition is against Annexure 1 Recovery Citation dated 15-07-2005. According to the petitioner, the loan taken by him from the first respondent Bank was under the Prime Minister's Rojgar Yojana and not under any 'state sponsored scheme' as defined in Section 2(g) of the U.P. Public Moneys (Recovery of Dues) Act, 1972 and therefore, the loan amount cannot be recovered from him invoking the provisions of Section 3 of the said Act. 2. Section 2(g) of the U.P. Public Moneys (Recovery of Dues) Act, 1972. defines 'state sponsored scheme' as follows : "2(g) "State-sponsored scheme" means a scheme sponsored by way of financial assistance by the State Government under which the State Government either advances money to a banking company or a Government company for the purpose of disbursing loans, advances or grants or for purpose of sale of goods on credit or hire-purchase or guarantees or agrees to guarantee the repayment of a loan, advance or grant or the payment of the price of goods sold on credit or hire-purchase and includes any other scheme of financial assistance, by a banking company or a Government company, which is declared to be a State-sponsored scheme by the State Government by the notification in the Gazette. 3. Section 3 of the said Act provides as follows: "3. 3. Section 3 of the said Act provides as follows: "3. Recovery of certain dues as arrears of land revenue.(1) Where any person is a party- (a) to any agreement relating to a loan, advance or grant given to him or relating to credit in respect of, or relating to hire-purchase of goods sold to him, by the State Government or the Corporation, by way of financial assistance; or (b) to any agreement relating to a loan, advance or grant given to him or relating to credit In respect of, or relating to hire-purchase of goods sold to him, by a banking company or a Government company, as the case may be, under a State-sponsored scheme; or (c) to any agreement relating to a guarantee given by the State Government or the Corporation in respect of a loan raised by an industrial concern or (d) to any agreement providing that any money payable thereunder to the State Government or the Corporation shall be recoverable as arrears of land revenue; and such person - (i) makes any default in repayment of the loan or advance or any instalment thereof; or (ii) having become liable under the conditions of the grant to refund the grant or any portion thereof makes any default in the refund of such grant or portion or any instalment thereof; or (iii) otherwise fails to comply with the terms of agreement then, in the case of the State Government, such officer as may be authorised in that behalf by the State Government by notification in the official Gazette and in the case of Corporation or a Government company the Managing Director or where there is no Managing Director then the Chairman of the Corporation, by whatever name called or such officer of the Corporation or Government Company, as may be authorised in that behalf by the Managing Director or the Chairman thereof, and in the case of a banking company, the local agent thereof, by whatever name called, may send a certificate to the Collector, mentioning the sum due from such person and requesting that such sum together with costs of the proceedings be recovered as if it were an arrear of land revenue. (2) The Collector on receiving the certificate shall proceed to recover the amount stated therein as an arrear of land revenue. (2) The Collector on receiving the certificate shall proceed to recover the amount stated therein as an arrear of land revenue. (3) No suit for the recovery of any sum due as aforesaid shall lie in the civil court against any person referred to in Sub-section (1). (4) In the case of any agreement referred to in Sub-section(l) between any person referred to in that Sub-section and the State Government or the Corporation, no arbitration proceeding shall lie at the instance of either party either for recovery of any sum claimed to be due under the said Sub-section or for disputing the correctness of such claim : Provided that whenever proceedings are taken against any person for the recovery of any sum, he may pay the amount claimed under protest to the officer taking such proceedings, and upon such payment the proceedings shall be stayed and the person against whom such proceedings were taken may make a reference under or otherwise enforce an arbitration agreement in respect of the amount so paid, and the provisions of Section 183 of the Uttar Pradesh Land Revenue Act, 1901, or Section 287-A of the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950, as the case may be, shall mutatis mutandis apply in relation to such reference or enforcement as they apply in relation to any suit in the civil court. 5. Save as otherwise expressly provided in the proviso to Sub-section (4) of this section or in Section 183 of the U.P. Land Revenue Act, 1901 or Section 287-A of the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950 every certificate sent to the Collector under Sub-section (1) shall be final and shall not be called in question in any original suit, application (including any application under the Arbitration Act, 1940) or in any reference to arbitration, and no injunction shall be granted by any court or other authority in respect of any action taken or intended to be taken in pursuance of any power conferred by or under this Act." 4. The first respondent Bank has filed a counter affidavit. It is not disputed that the loan was given to the petitioner under the Prime Ministers Rojgar Yojana. The first respondent Bank has filed a counter affidavit. It is not disputed that the loan was given to the petitioner under the Prime Ministers Rojgar Yojana. It is not contended that the Prime Ministers Rojgar Yojana is a scheme sponsored by way of financial assistance by the State Government under which the State Government either advanced money to the respondent Bank for the purpose of disbursing loans, advances or grants or for purpose of sale of goods on credit or hire-purchase or guarantee or agreed to guarantee the repayment of a loan, advance or grant or the payment of the price of goods sold on credit or hire-purchase. It is also not contended that the loan was sanctioned under a scheme of financial assistance which has been declared to be a State-sponsored scheme by the State Government by notification in the Gazette. In such circumstances, the petitioner is right in contending that the loan was not sanctioned under a 'State sponsored scheme' and therefore, Section 3 of the U.P. Public Moneys (Recovery of Dues) Act, 1972 cannot be invoked against him. 5. Hence, the writ petition is allowed quashing Annexure 1 Recovery Citation. But it is made clear that this judgment will not stand in the way" of the first respondent taking steps to recover the amount due from the petitioner otherwise than by invoking the provisions of Section 3 of the U.P. Public Moneys (Recovery of Dues) Act, 1972.