Dinesh Chandra & Another vs District Magistrate & Others

Manoj Kumar Tiwari, J

Heard learned counsel for the parties through video conferencing.

Petitioners are the guarantors in respect of a loan which was taken by one Mr. Bhupal Ram S/o Mr. Madan Ram, R/o Village Faltaniya,

Bageshwar, District Bageshwar from Uttarakhand Gramin Bank, Branch Harsila, District Bageshwar, in the year 2013. Since the principal borrower

defaulted in repayment of the loan, therefore, the Bank has issued a recovery certificate against the petitioners. The Tehsildar has now issued a

citation for recovery of Rs. 6,15,061/- + recovery charges and others expenses. Thus, feeling aggrieved, petitioners have approached this Court.

Learned counsel for the petitioners submits that although primarily the liability to repay the loan rests upon the principal borrower, however, since

the principal borrower has failed to discharge his obligation, therefore, the petitioners undertake to repay the remaining amount of loan. He, however,

submits that some reasonable time be given to the petitioners for repaying the loan.

Mr. Mahendra Singh Rawat, learned counsel appearing for the respondent-Bank submits that if the petitioners deposit a reasonable amount in the

Bank within one month from today, then he has no objection if petitioners are extended the facility of repaying the remaining amount in three quarterly

installments.

Having regard to the willingness shown by the petitioners to liquidate the loan and also in view of the concession given by the learned counsel for

the Bank, the writ petition is disposed of with the following directions:-

(i) Petitioners shall deposit a sum of Rs. 1,50,000/- (One Lakh Fifty Thousand) with the Uttarakhand Gramin Bank, Branch Harsila, District

Bageshwar, on or before 25.06.2021.

(ii) On petitioners’ depositing Rs. 1,50,000/-with the Bank within the stipulated time, they shall be permitted to deposit the remaining amount in

three quarterly installments to be fixed by the Competent Authority in the Bank. The last installment shall carry amount of interest also.

(iii) The recovery charges shall stand waived as the petitioners would be directly depositing the amount with the concerned Branch of the Bank.

(iv) In case of any default in fulfillment of the aforesaid conditions, the Bank would be at liberty to proceed against the petitioners for recovery of the

outstanding loan amount, in accordance with law.