SHYAMLAL PANT Vs. STATE OF UTTARAKHAND

JUDGEMENT

(1.) The State has floated a scheme called as Veer Chandra Singh Garhwali Self Employment Scheme, for the purposes of providing financial assistance to the senior citizen and to ex army personnel, in order to enable them to make profitably engaged.

(2.) The petitioner contends that in the year of 2005, he was an applicant for the purposes of procurement of the loan advances under the said scheme and as a consequence thereto, the respondents/bank had extended a financial assistance to him to the tune of Rs.77,000.00 as sanctioned in his favour in 2005. The petitioner had admittedly committed a default in the remittance of the loan amount; as a consequence thereto the respondents/bank has referred the recovery proceedings, to be resorted to against the petitioner by invoking the provision contained under Sec. 11-A of The Uttar Pradesh Agricultural Credit Act of 1973. By invoking the aforesaid provisions by issuance of a recovery citation under the Rule 27 of the Rules as framed under the said Act was issued against the petitioner for recovery of the amount of Rs.12,97,420.00. The same has been put to challenge.

(3.) The argument of the learned counsel for the petitioner is that the recovery proceedings being resorted to under Sec. 11-A of the Act of 1973, could not be resorted to, for recover an amount which takes shape of a commercial loan under the scheme floated by the State Government, which was provided for the purposes of construction of a lodge in order to profitably engaged the retired, ex-army personnel or senior citizens. If the basic intention of the scheme was for the purposes of extension of a commercial loan for construction of a lodge, which is an admitted fact, because the pleadings raised in para 3 of the writ petition with regards, to the head under which the loan was extended, is not a fact denied in the counter affidavit. In that eventuality if Sec. 11-A of the Act, if it is taken into consideration, which is extracted hereunder:-