Krishna Kaur (Female) vs Collector/District Magistrate, District Udham Singh Nagar & Others

Manoj k. Tiwari, J

Petitioner stood as guarantor in respect of a loan taken by M/s Hemkund Tractors from Nainital Bank Ltd., SIDCUL Branch, Rudrapur, District

Udham Singh Nagar. Since the principal borrower defaulted in repayment of loan, therefore, the Bank approached Debts Recovery Tribunal,

Dehradun. Debts Recovery Tribunal has decreed the claim of the Bank, which has not been challenged either by the borrower or by the petitioner.

Grievance raised by the petitioner in the present writ petition is that the bank proceeded to recover the outstanding loan amount from her and not

from the borrower. According to the petitioner, the assets of the principal borrower, mortgaged with the Bank, are sufficient to liquidate the loan;

therefore, the Bank should first proceed against the asset of the principal borrower, and if the loan amount is not realized fully, than Bank shall

proceed against the petitioner.

Since the liability of the guarantor is co-extensive with that of the borrower, therefore, this Court is not inclined to interfere with the matter.

However, having regard to the facts and circumstances of the case, the writ petition is disposed of with liberty to the petitioner to approach the

Competent Authority in the Bank by making a representation. If such representation is made within a week, the Competent Authority shall take

decision thereupon, in accordance with law, within two weeks thereafter.

For a period of three weeks or till decision on petitioner’s representation, no coercive action shall be taken against the petitioner.

Let certified copy of this order be issued today itself.