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2013 DIGILAW 637 (UTT)

PREM KUMAR MISHRA v. TEHSILDAR, RAMNAGAR

2013-10-08

SUDHANSHU DHULIA

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JUDGMENT Hon’ble Sudhanshu Dhulia, J. (Oral) 1. The petitioners before this Court are the guarantors of a loan, which was taken by respondent No. 5 – Smt. Anita Pandey in the year 2004 for a sum of ‘75,000/- from Almora Urban Co-operative Bank Ltd. (hereinafter referred to as ‘Bank’). The amount of loan has not been repaid and consequently, the matter went to Additional Registrar, Co-operative Societies Uttarakhand wherein an order has been passed under Section 71 of the Uttaranchal Co-operative Societies Act, 2003 that the money has to be recovered from the principal borrower and in case it is not recoverable from the principal borrower then Bank can proceed to recover the amount from the guarantors i.e. the present petitioners. Therefore, the recovery proceedings have been initiated against the petitioners. 2. The recovery citation dated 20.08.2013 has been issued by the Tehsildar Ramnagar. The same has been challenged by the petitioners on the ground that they are only the guarantors and the Bank has not exhausted its remedy for recovering that amount from the principal borrower. 3. Mr. Siddhartha Sah, Advocate who represent the Bank fairly admits that since the Bank has not exhausted its remedy as yet to recover the amount from the principal borrower, it may be given that liberty to recover the same from the principal borrower first. 4. In view of the above, the writ petition is disposed of with a direction to the Bank that it shall first make all efforts to recover the amount of loan from the principal borrower i.e. Smt. Anita Pandey and in case it fails to recover the amount from her, the Bank will be at liberty to recover the same from the petitioners. It is also made clear that the recovery citation issued by the Tehsildar, Ramnagar shall be kept in abeyance for a period of two months from today. It is further directed, in case, the money is not recovered from the principal borrower, before initiating fresh proceedings for recovering the amount of loan against the petitioners, the Bank shall give due notice to the petitioners, in accordance with law. 5. No order as to costs.