Court No. - 21
Case :- WRIT - C No. - 10372 of 2018 Petitioner :- Gulgulram Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Ajay Kumar Counsel for Respondent :- C.S.C.,Narendra Kumar Giri
Hon'ble Krishna Murari,J. Hon'ble Ajay Bhanot,J.
Heard learned counsel for the petitioner and Sri Narendra Kumar Giri, who has accepted notice on behalf of respondent no.4.
Admittedly, the petitioner has availed the facility of loan to the tune of Rs. one lac from respondent no.2, U.P. Co-operative Societies Gram Vikas Bank Ltd. in the year 2000. It is admitted case that not a single penny has been repaid by the petitioner to discharge the loan liability. The bank initiated proceedings for recovery of its outstanding dues and issued a notice dated 15.2.2017 requiring the petitioner to deposit a sum of Rs.8,83,627/-, which has been worked out as an outstanding amount failing which the mortgaged property shall be auctioned. Aggrieved by the same the instant writ petition has been filed.
Learned counsel for the petitioner contends that interest levelled against him is on an extremely higher side and there is a remedy of arbitration available to settle the dispute under Section 70 of the U.
P. Cooperative Societies Act and as such the bank straightway could not have issued notice for recovery of its amount and for recovery of its dues.
Looking to the conduct of the petitioner that after availing facility of loan 18 years back till date not a single paisa has been repaid, in exercise of power under Article 226 Constitution of India, which is an equitable jurisdiction, we are not inclined to entertain any of the pleas raised by the petitioner in this regard at this stage. An offer was made to the learned counsel for the petitioner that in case he deposits a sum of Rs.5 lac, the matter can be considered and referred for arbitration to determine the exact amount due from the petitioner under section 70 of the U.P. Cooperative Societies Act.
Learned counsel for the petitioner states that petitioner is ready and willing to deposit the said amount if some time is allowed and he may be permitted to deposit the said amount in two installments.
Learned counsel for the respondent bank has no objection.
Considering the aforesaid facts and circumstances, we hereby direct that petitioner may deposit a sum of Rs.2.5 lac with the respondent no.2, bank within a month from today and the remaining balance Rs.2.5 lac within one month, thereafter. Initially for a period of one month the consequential proceedings in pursuance of the impugned notice dated 15.2.2017 (annexure 1 to the writ petition) shall be kept in abeyance. In case first instalment is deposited the proceedings shall be remain in abeyance for another one month to enable the petitioner to deposit the second instalment. After the second instalment is deposited by the petitioner the matter shall be referred for a decision in arbitration proceeding as provided by section 70 of the U.P. Cooperative Societies Act, in accordance with law.
In case of default, this order shall stand automatically vacated and the notice dated 15.2.2017 shall stand revived and it shall be open to the respondent bank to recover the amount, in accordance with law.
With aforesaid observation, present writ petition is finally disposed of.
Order Date :- 23.3.2018 Pramod