STATE OF PUNJAB Vs. S DHARAM SINGH DEAD

JUDGEMENT

(1.) The present appeal by special leave is directed against the judgment of a Division Bench of the High Court of Punjab and Haryana dated l3th September, 1971 dismissing the letters patent appeal against the judgment of a learned Single Judge dated 17th March, 1971 allowing the writ petition filed by the respondents.

(2.) The short question that falls for consideration in the present appeal is whether the amount of loan in question can be recovered as arrears of land revenue by arrest and detention in view of Cl. 4 of the loan agreement.

(3.) Dera Baba Nanak Co-operative House Building Society Ltd., respondent No. 2, was a registered society. It had 32 members to start with. The society entered into an agreement with the Government of Punjab whereunder the Government agreed to advance a loan of Rs. 1,02,000/- to its members under the lower income group housing scheme for the purpose of constructing residential houses on the site measuring 35,100 sq. ft. in Dera Baba Nanak. The agreement was evidenced by a written document. Under the terms of the agreement the government was to advance the loan in three instalments - the first instalment of Rs. 20,400/- was to be paid by the government on the execution of the deed of agreement, the second instalment of Rs. 51,000/- was to be paid on the completion of the houses to the plinth level and the last instalment of Rs. 30,600/- on the completion of the houses to the roof level. The members of the society on the other hand had to repay the loan advanced with interest in thirty annual instalments, the first instalment was to become due twelve months after the date of sanctioning the first instalment of loan. It was further stipulated that the society would mortgage the said sites together with houses erected or to be erected thereon thereafter to the government as security for the repayment of the said loan and interest. The loan agreement further contemplated that the government would recover the amount of loan first from the property mortgaged and if there was a shortfall then the, government shall be entitled to recover the same personally from the borrowers as well as from the movable or other immovable property belonging to the borrowers.