Ishwar Chand vs State Bank Of India & Others

Manoj Kumar Tiwari, J

Petitioner took a loan from State Bank of India, A.D.B. Branch Roorkee, District Haridwar. Since petitioner could not repay the loan in time,

therefore, Bank has issued a recovery certificate for a sum of ₹14,49,463/- plus other charges. Pursuant to the said recovery certificate, Tehsildar,

Haridwar issued a recovery citation against the petitioner. Thus, feeling aggrieved, petitioner has approached this Court.

A coordinate Bench of this Court had passed an interim order dated 01.06.2018 providing that if petitioner deposits a sum of ₹1.00 lakh with the

Bank within three weeks, then recovery citation issued against him shall remain stayed.

It is a fact that petitioner is a borrower, therefore, he is bound by the terms and conditions of the loan agreement executed between him and the

Bank. Thus, there is no scope for interference with the recovery proceedings initiated against the petitioner due to his default.

Learned counsel for the petitioner submits that in the initial notice, the Bank had indicated lesser amount, then the amount stated in the recovery

certificate.

Having regard to the facts and circumstances of the case, the writ petition is disposed of by permitting the petitioner to approach the Competent

Authority in the Bank by making a representation seeking permission to repay the outstanding amount in six installments. He shall, however, deposit a

sum of ₹50,000/-, within three weeks from today to show his bonafide. The Competent Authority in the Bank shall take decision on petitioner’s

representation, in accordance with law, within a period of three weeks from the date of receipt of such representation. The Bank shall also provide

statement of account to the petitioner, so that petitioner may ascertain the exact amount, which he is liable to pay.

For a period of six weeks or till decision on petitioner’s representation, whichever is earlier, no coercive action shall be taken against the

petitioner.