BANK OF INDIA Vs. KALPTARU VANIKA BHOPAL

JUDGEMENT

(1.) Heard the learned counsel for the petitioner as well as the learned counsel representing the contesting respondents.

(2.) The petitioner-Bank had issued a recovery-certificate contemplated under Section 3 of the Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam, 1987, against (1) M/s. Kalptaru Vanika, a Partnership Firm as well as (2) Mrs. Praveen Malik, Partner, (3) Mrs. Reeni Malik, (4) Mrs. Sarita Tondon, and (4) Mr. Ramakant Ram, who were its partners, for the recovery of an amount of Rs. 22,80,797/- along with an interest calculated at the rate of 18.25 per cent. In the aforesaid recovery-certificate it had also been indicated that Mr. Subhash Malik, the present respondent No. 6, was the guarantor for securing the payment due to the Bank. The aforesaid recovery certificate was issued on 8-10-1996.

(3.) Pursuant to the recovery-certificate indicated hereinabove, proceedings for the recovery of the amount mentioned therein were initiated under the provisions of the Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki. Vasuli) Adhiniyam, 1987. The Scheme underlying the provision of the aforesaid Act clearly indicates the recovery-certificate has to be issued by the 'creditor authority' as contemplated under Section 3 (1) (D)(c) of the Act. This recovery certificate has to be executed for the amount determined to be due which has to be recovered by the 'Recovery Authority' contemplated under Section 3(2) of the Act.