VINDHAYACHAL Vs. COMMISSIONER AZAMGARH DIVISION AZAMGARH

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) PETITIONER in the year 1989-90 took a loan of Rs. 92,000 for purchasing tractor from State Bank of India, Rani Ki Sarai, Azamgarh Branch. After repaying an amount of Rs. 15,000, petitioner did/could not repay the remaining amount of the loan. Recovery certificate of Rs. 2,01,756 was issued against the petitioner and sent to the Tehsil authorities. In pursuance of the said recovery certificate the tractor was sold on 17.2.1995 for Rs. 53,100. Thereafter, another recovery certificate was issued on 15.6.1995 for remaining amount which was shown to be Rs. 1,56,382. In pursuance of the said recovery certificate petitioner's agricultural plot No. 378 area 1.5 hectares was directed to be auctioned. PETITIONER deposited an amount of Rs. 1,02,500 on 14.8.1995. However, the aforesaid plot of the petitioner was auctioned on 22.1.1996. Collector on behalf of the State Government purchased the plot in question for Re. 1, Annexure-2 is bid/auction sheet in which it is mentioned that no one appeared to bid and on the earlier occasion of auction also no one had turned up to bid hence for the outstanding dues of Rs. 56,382.50 the property was auctioned in favour of State Government. It has not been shown that what was the reserved price of the land in dispute shown in proclamation of sale. In the writ petition it has been stated that market value of the land in dispute was Rs. 8,00,000. Even though the market value of Rs. 8,00,000 appears to be on the higher side, however, judicial notice may be taken of the fact that in almost no part of Uttar Pradesh in the year 1996 market value of agricultural land could be less than Rs. 1,00,000 to 1.5 lakhs per hectare. The auction was approved by Deputy Collector on 16.3.1996, Annexure-3 to the writ petition. Annexure-4 to the writ petition is a report sent by the bank concerned to the Tehsildar dated 27.4.1996 in reply to his letter dated 24.4.1996 informing that the dues against the petitioners were Rs. 56,382.50 and interest uptil 30.4.1996 was Rs. 20,192.50 (total Rs. 76,575).

(3.) BANKS in the matter of huge commercial loans liberally extend the facility of one time settlement by reducing the total amount of loan and interest due till then drastically. However, in the case of agricultural loans banks are not ready to reduce the interest even in case of genuine difficulties faced by the borrowers. As far as principal amount is concerned, there is absolutely no question of reducing the same by a single penny. However, as far as huge interest is concerned banks may show some humane face by reducing that.