RAM BABU SINGH Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) HEARD

(2.) THE petitioner had approached the respondent -bank, which bank is a nationalized bank for grant of agricultural loan to purchase a tractor. The petitioner was granted loan of Rs. 3 lakh under an agreement duly executed. The tractor, as per the said agreement was hypothecated to the bank. The agreement has been annexed as Annexure A to the counter affidavit by the respondent -Bank. The agreement was executed on 19.8.2004. The petitioner admittedly defaulted in liquidating the loan. The liability increased substantially. When the liability increased to Rs. 3,95,000/ - and the petitioner made no efforts to liquidate the same, the bank took possession of the hypothecated tractor. Possession having been taken, still the petitioner was unable to liquidate the dues. Bank then advertised for sale of the tractor. Tractor has since been sold and transferred to the purchaser. This allegedly highhanded action of the respondent -bank is questioned by way of this writ application. It is submitted that the petitioner is an agriculturist and due to various reasons he was unable to pay and/or liquidate the dues. It is submitted that even though admittedly he was in substantial debts, the respondent -bank acted arbitrarily in repossessing the vehicle and auction selling it. This, it is submitted, is arbitrary on the face of it and should be not only deprecated by the Court but possession be restored to the petitioner.

(3.) THE bank has appeared and alongwith its counter affidavit, has filed the agreement.