MOTILAL Vs. STATE OF U.P. AND ORS.

JUDGEMENT

(1.) This petition under Article 226 of the Constitution prays that by a writ in the nature of mandamus Respondents be directed not to realise the money as arrear of land revenue by arrest of the Applicant or by sale of the property without due process of law. At the hearing learned Counsel for the Petitioner confined his relief to realisation of the money by arrest of the Petitioner.

(2.) The Petitioner applied for and obtained a loan of Rs. 4, 000/ - form the State under an agreement on 29 -9 -1961. The loan was repayable in instalment. The agreement provided that in case of default the loan could be realised as arrear of land revenue by sale of the property hereby given in security without the intervention of the court. The petition states that because of various reasons the Petitioner was unable to make payment of the instalments and the Respondents are realising it as an arrear of land revenue. During proceedings for realisation, a process for the arrest of the Petitioner has been issued. The Petitioner's grievance is that under the contract the Respondents are entitled to realise the loan only by sale of the property and not by the Petitioner's arrest. He has also stated that unlike loans given under Agriculturists Loans Act, Land Improvement Loans Act, Legal Authorities Loans Act, Income -tax Act and other similar Acts where there is a specific statutory provision for realisation of the loan by processes including arrest, the present loan cannot be realised by the Petitioner's arrest, in the absence of any statutory authority. Learned Counsel has relied upon a decision of a learned single Judge of this Court in Civil Misc. Writ Petition No. 2306 of 1963 decided on 8 -9 -1965 wherein it was held that there is no statutory provision entitling the Government to realise its dues as arrear of land revenue and the right to use this procedure arises purely by way of contract under the terms of agreement entered into by the Petitioner. Under the agreement, there was no authority to realise the loan by arrest of the Petitioner.

(3.) Learned Counsel for the Respondents has invited my attention to the Public Moneys (Recovery of Dues) Act, No. XV of 1965. This Act was published in the gazette on 12 -4 -1965. Sec. 3 of this Act reads as follows: