R.V.S. Khokher vs Nainital Almora and Others

V.K. Bist, J.—Present writ petition has been filed by the petitioner for restraining the respondents from recovering the amount under citation through coercive process.

Learned senior counsel for the petitioner submitted that petitioner has taken Kisan Credit limit of Rs. 95,000/-and also taken Rs. 50,000/- for agricultural purpose from the respondent-Bank. The respondent No. 1, while sanctioning the loan, got an agreement signed by the petitioner. The petitioner could not deposit the amount in time and due to this reason recovery citation was issued on 15.05.2010. Learned senior counsel also submitted that before initiating recovery proceedings, no notice was served on the petitioner and in view of this fact, the entire recovery proceeding is bad and recovery citation deserves to be set aside. He also submitted that although the petitioner is ready to deposit entire amount of loan but respondents are not accepting the same from the petitioner.

During the course of argument learned Counsel for the petitioner states that he is ready to pay entire amount including interest provided respondent-Bank consider for lowering the rate of interest. Learned Counsel for the respondent is also agreed for the same and stated that bank will consider the demand of the petitioner for lesser rate of interest.

Having heard learned Counsel for the parties and after considering the undertaking given by the petitioner and also in the interest of justice, the writ petition is disposed of in the following manner:

i. Petitioner is permitted to make representation before the respondent-Bank for reduction of interest within a period of ten days.

ii. In case such representation is filed within a period of ten days the respondent-Bank shall consider the same and pass an order within 15 days from the date of receipt of the order. The respondent-Bank will also communicate the petitioner about the total amount to be paid by the petitioner.

iii. After receipt of communication from the respondent-Bank, the petitioner will deposit the entire amount alongwith interest and recovery charges within one month thereafter.

iv. In the event of default, this order shall stand vacated.

Stay application No. 5619 of 2010 also stands disposed of.