Ganesh Ram & Another vs District Magistrate, Bageshwar & Others

Manoj Kumar Tiwari, J

Petitioners are guarantors in respect of a loan taken by principal borrower â€" Mohan Ram from Uttarakhand Gramin Bank, Branch Harsila,

District Bageshwar. Since principal borrower committed default in repayment of loan, therefore, the Bank has initiated recovery proceedings against

the petitioners.

Mr. G.C. Kandpal, learned counsel for the petitioners submits that even though petitioners’ are guarantors, but they are ready and willing to

repay the loan. He, however, submits that due to financial constrains, petitioners are not able to pay off the entire liability in one go, therefore, they

may be permitted to repay the loan in four installments.

Mr. M.S. Rawat, learned counsel appearing for the respondent Bank submits that he has no objection if petitioners are permitted to repay the loan

in four installments, however, petitioners may be required to deposit a sum of ₹2.00 lakh within three weeks to show their bona fide.

Having regard to the facts & circumstances of the case as well as the eagerness shown by the petitioner to repay the loan and also in view of

concession given by learned counsel for the Bank, the writ petition is disposed of with the following directions:

(i) Petitioners shall deposit a sum of ₹2,00,000/-with the Uttarakhand Gramin Bank, Branch Harsila positively on or before 10.08.2021.

(ii) The remaining amount shall be deposited by the petitioners in three equal installments spread over a period of six months.

(iii) The last instalment shall also carry interest, if any.

(iv) Petitioners shall not be liable to pay recovery charges, if they deposit outstanding amount directly with the Bank, as stipulated above.

(iv) In case of any default by the petitioners, they shall not be entitled to protection of this order and respondent/Bank will be free to proceed against

them, in accordance with law.