LAWS(ALL)-1998-11-69

ANUPAM SARI CENTRES Vs. COLLECTOR PADRAUNA

Decided On November 03, 1998
ANUPAM SARI CENTRE Appellant
V/S
COLLECTOR, PADRAUNA Respondents

JUDGEMENT

(1.) Through these various writ petitions, the petitioners have challenged the right of the opposite party Banks to realise the amount of loan taken by the petitioners, as arrears of land revenue under the provisions of Section 3 of the Uttar Pradesh Public Moneys (Recovery of Dues) Act. 1972 (hereinafter referred to as the Recovery of Dues Act only), and have prayed for quashing the Citation, issued by the opposite party district authorities. Since the controversy involved in all these writ petitions is the same, hence all the writ petitions are disposed of together.

(2.) We have heard S./Shri Ranjit Saxena, Rajendra Kumar Mishra. N. S. Chahar. Ashok Bhushan, Ran Vijai Singh, P. N. Mishra and S. N. Srivastava. learned counsel for the petitioners, and S./Shri Sharad Verma, V. K. Goel. Ajai, Rajendra Prasad Gupta, Sachin Mohan, K. L. Grover. Ashish Bhattacharya, S. P. Srivastava and the Chief Standing Counsel, learned counsel for the respondents.

(3.) In Writ Petition No. 953 of 1997. M/s. Anupam Sari Centre borrowed loan from the respondent Central Bank of India under Cash Credit Facility. The loan borrowed by the petitioner. the petitioner contends, is a commercial loan, not under a State Sponsored Scheme. The said amount cannot be recovered under the provisions of the Recovery of Dues Act, The remedy open to the respondent Bank is to file a suit. The petition has been resisted by the respondent Bank, contending that the aforesaid facility to the petitioner was sanctioned under the State Sponsored Scheme as the respondent Bank uses to give guarantee fee to Deposit Insurance Credit Guarantee Corporation, which is a Central Government Corporation, and give guarantee for the repayment in case the loan or any facility granted by the Bank becomes doubtful either from the borrower or guarantors. The loan in question can be recovered under the provisions of the Recovery of Dues Act.