AZIZ HAIDER Vs. STATE OF U P

JUDGEMENT

(1.) ON February 5, 1975, Imdad Husain, the predecessor-in-interest of the petitioners took on loan a sum of Rs. 38,000/- from the State Bank of India, Agricultural Development, Branch Chakiya, district Varanasi, repayable in instalments with interest. The loan taken was for the purpose of purchase of a tractor. The borrower did make purchase of a tractor from the money advanced to him. The tractor was hypothecated with the Bank in addition to the security furnished by mortgage of 13.22 acres of land. A sum of Rs. 1500/- only was paid back by him to the Bank on May 25, 1975. Imdad Husain died on January 16, 1976. The petitioners claim to have made payment of a sum of Rs. 18,155/- during the period of February 24, 1977 to January 1981. In view of the default incurred the State Bank issued Certificate of Recovery under Section 11-A of the U. P. Agricultural Credit Act, 1973 to the Collector district Varanasi. Subsequent to this a sum of Rs. 6000/- was allegedly paid by the petitioners in three instalments of Rs 2000/- each during March 31, 1986, to September 3, 1986. For the balance remaining unpaid, there was attachment made of the tractor aforementioned on January 9, 1987. Aggrieved against the recovery being proceeded against, the petitioners have preferred this petition under Art. 226 of the Constitution.

(2.) WE have heard Sri Ram Niwas Singh learned counsel appearing for the petitioners.

(3.) IT was next argued for the petitioners that there was no opportunity given by the Bank to them before the issue of the Certificate of Recovery and hence the action taken in pursuance thereof is vitiated. In this context it is of interest to refer to the contents of paragraph 7 of the writ petition wherein it is admitted in express terms that as the entire loan together with interest was not repaid, the Bank was at liberty to proceed for recovery of the loan in accordance with the provisions of the U. P. Agricultural Credit Act, 1973. This aspect of the matter also came to be considered in Trijugi Narain Tewari (supra) as appearing in paragraph 28, with which we are in respectful agreement :-