IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.10195 of 2008 RAGHU NANDAN PRASAD MANDAL SON OF LATE BHIKHU MANDAL, R/O VILLAGE BASANTPUR, P.S. SHANKARPUR, DISTRICT MADHEPURA……………………..PETITIONER. Versus 1. THE CHEIF GENERAL MANAGER OF S.B.I., NEAR GANDHI MAIDAN, PATNA 2. ASSISANT GENERAL MANAGER, STATE BANK OF INDIA (AGRICULTURE DEVELOPMENT BRANCH) NEAR GANDHI MAIDAN, PATNA (BIHAR). 3. BRANCH MANAGER OF S.B.I. (AGRICULTURE DEVELOPMENT BRANCH) SINGHESHWAR, DISTRICT MADHEPURA. 4. REGIONAL OFFICER OF S.B.I. (AGRICULTURE DEVELOPMENT), PURNEA. 5. SKY RECOVERY AGENCY PVT. LTD. PATNA. 6. EX BRANCH MANAGER OF S.B.I. SINGHESHWAR (MADHEPURA)…………………………...RESPONDENTS. ----------- 04/ 01.04.2011 Heard learned counsel for the petitioner and learned counsel for the respondents. 2. This writ petition has been filed by the petitioner for restraining the respondents from realization of loan amount granted to the petitioner. By I.A. No.97 of 2010 the petitioner has also sought a relief for release of his tractor. 3. It is not in dispute that the petitioner has taken loan from the respondent whereafter the tractor in question was provided to the petitioner but when the entire loan with interest was not paid within the time prescribed, petitioner’s tractor was seized by the respondent authority forcibly. 4. It is stated that as per Clause-10 of the Hypothecation Agreement between both the parties dated 26.03.2002 in the event of default, the bank will have a right to take over possession of the securities charged and sell them - 2 - and recover its dues and the borrower had authorised the bank to act as their attorney/agents for all intents and purposes for effectual implementation of the aforesaid action. 5. This court is of the view that for recovery of loan etc. the tractor should not have been forcefully seized rather the respondents should have taken coercive action against the petitioner under any relevant provisions of law such as the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Bihar & Orissa Public Demands Recovery Act etc. It is also not in dispute that the petitioner had not paid loan amount entirely and amount due has to be calculated after re-scheduling of the loan amount and interest as well as the debts reliefs in accordance with the Reserve Bank of India’s Guidelines. 6. In the aforesaid facts and circumstances, this writ petition is disposed of with a direction to the petitioner to file an application before the Branch Manager, State Bank of India (Agriculture Development Branch) Singheshwar, District Madhepura (respondent no.3) along with a copy of this order and a bank draft of Rs.25,000.00 within 30 days from today. If such an application, order and draft are filed by the petitioner, the said respondent should immediately release the tractor in favour of the petitioner. The said authority will also re-schedule the loan amount of the petitioner with interest calculating the debt relief which has already been granted to the petitioner as per the Reserve Bank of India’s Guidelines and give the - 3 - statement of Account to the petitioner within three months from the date of filing of application. The petitioner shall pay the entire due amount as per the said re-schedule within three months thereafter. If the petitioner fails to deposit the said amount as per re-scheduling of the amount within the said period, the authorities of the Bank will be at liberty to take all coercive action against the petitioner under the relevant provisions of law. Harish (S.N. Hussain, J.)