VENKATARANGAIAH M C Vs. STATE BANK OF MYSORE

JUDGEMENT

(1.) Venkatarangaiah - the petitioner approached the State Bank of Mysore ('the Bank') for financial assistance to purchase a tractor. The Bank granted a loan of Rs. 14,000 in 1974 and Rs. 82,000 in 1975. The loan was required to be repaid by six years in half yearly instalments. The petitioner, however, defaulted to pay the instalments . The Bank thereupon approached the Tahsildar, Kunigal, under S. 5(3) of the Karnataka Agricultural Credit Operations and Miscellaneous Provisions Act, 1974 ('the Act') with a request to recover the dues from the petitioner by attachment and sale of the tractor which was hypothecated by the petitioner. The Bank also produced an extract of the account maintained in relation to the loan transaction. The Tahsildar called upon the petitioner to show cause why the dues could not be recovered from him.

(2.) The petitioner appeared before the Tahsildar and disputed the correctness of the amount claimed by the Bank. But he did not produce proof in support of his contention. The Tahsildar by order dated 31-5-1980 directed the Revenue Inspector to take charge of the tractor. Challenging that order the petitioner has approached this court for relief under Art. 226 of the Constitution.

(3.) The only question that arises for consideration is, whether the Bank could have invoked the provisions of S. 5(3) of The Act without a certificate issued by the Assistant Registrar of Co-operative Societies under S.12 of the Act. Mr. Achar, learned Government Advocate for the respondents submitted that a certificate under S. 12 of the Act is wholly unnecessary, if the Bank wants to proceed against the petitioner under S.5(3) of the Act, whereas Mr. Dasappa for the petitioner contended to the contrary.