Jamuna Prasad Sahu vs Almora Urban Co-Operative Bank Ltd. And Others

Manoj Kumar Tiwari, J

Petitioner took a loan from Almora Urban Co-operative Bank Ltd. Branch Sitarganj. Since, he could not re-pay the loan in time, therefore, the

respondent-Bank has issued a recovery certificate. In this writ petition, petitioner has challenged the recovery citation dated 24.06.2021 issued against

him.

The outstanding amount is indicated as Rs. 4,02,790/- + other charges in the said recovery citation. Thus, feeling aggrieved, petitioner has

approached this Court challenging the recovery citation.

Learned counsel for the petitioner submits that the default committed by the petitioner in timely re-payment of the loan is mainly due to lockdown

imposed in view of COVID-19 Pandemic. He further submits that petitioner is ready and willing to re-pay the entire loan amount, provided some

reasonable time is given to the petitioner for the purpose.

Learned counsel for the respondent-Bank submits that if petitioner undertakes to deposit at least 10% of the outstanding amount within six weeks,

then petitioner may be permitted to deposit the balance amount in seven monthly installments.

In view of the readiness shown by the petitioner to re-pay the loan and also in view of the consent given by the learned counsel appearing for the

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

(i) Petitioner shall approach the bank authorities by making representation on or before 18.09.2021.

(ii) If petitioner makes such representation within the stipulated period alongwith upfront deposit of Rs. 40,000/- to show his bonafide, then the

respondent-Bank shall inform the petitioner, within four days from date of receipt of representation alongwith certified copy of this order, about the

exact amount, which he is liable to re-pay.

(iii) Petitioner shall repay the outstanding amount in seven monthly installments.

(iv) Recovery charges shall be waived off, if petitioner directly deposits the outstanding amount with the respondent-Bank.

(v) No coercive steps shall be taken against the petitioner for a period of nine months, pursuant to the impugned recovery citation.

(vi) In case of any default by the petitioner, he shall not be entitled to protection of this order and respondent/Bank will be free to proceed against him,

in accordance with law.