M/S Raghav Food And 4 Others vs State Of U.P. And 3 Others
2023 Latest Caselaw 14601 ALL

HIGH COURT OF JUDICATURE AT ALLAHABAD
 
 

?Neutral Citation No. - 2023:AHC:99911-DB
 
Court No. - 21
 
Case :- WRIT - C No. - 15261 of 2023
 
Petitioner :- M/S Raghav Food And 4 Others
 
Respondent :- State Of U.P. And 3 Others
 
Counsel for Petitioner :- Udit Chandra
 
Counsel for Respondent :- C.S.C.,Sanjai Singh
 

 
Hon'ble Manoj Kumar Gupta,J.

Hon'ble Prashant Kumar,J.

The instant petition is directed against the citation to appear dated 11.4.2023 seeking to recover the defaulted sum along with interest from the petitioners in respect of financial assistance given to the petitioners by way of CC Working Capital (term loan) by respondent no.4.

The submission of learned counsel for the petitioners is that the loan taken by the petitioners was purely a commercial transaction and there is no stipulation in the agreement that the Bank would be entitled to recover the defaulted sum by taking recourse to the provisions of the U.P. Public Money (Recovery of Dues) Act, 1972. It is submitted that the respondent-Bank had already initiated proceedings for recovery against the petitioners by invoking the machinery provided under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. In support of his contention, he has placed reliance on a Full Bench Judgment of this Court in Smt. Sharda Devi Vs. State of U.P. & Ors. AIR 2002 All 1.

Sri J.S. Pandey, Advocate, holding brief of Sri Sanjay Singh, learned counsel appearing for respondent no.4 concedes to the above legal position.

Consequently, the impugned recovery citation dated 11.4.2023 is quashed leaving it open to the respondent-Bank to recover the amount by taking recourse to such other machinery, as may be advised.

The petition stands disposed of, accordingly.

Order Date:- 9.5.2023

CS/-

(Prashant Kumar, J.) (Manoj Kumar Gupta, J.)