IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.15299 of 2007 MD.SHAHID ALAM Versus THE STATE OF BIHAR & ORS --------- 07 12.09.2008 The petitioner wanted to set up a small Atta Chaki. He applied to the respondent-Bank for loan. A loan of Rs. 35,000/-was sanctioned. In stead of money being given to the petitioner Bank alleges that on petitioner’s instruction money was remitted to a firm for supply and machinery to the petitioner. Petitioner alleges that the firm was fictitious and had been picked up the then Branch Manager to cipher the money of small debtors like the petitioner. In fact, there was no such firm nor any machinery was to be supplied by that firm at the instance of the petitioner nor in fact the petitioner ever received any machinery. It is specifically asserted that not only the petitioner but several other similar small debtors who were cheated by the Branch Manager. For which criminal cases against the Branch Manager and the Cashier, wherein, they were chargesheeted by the Police after investigation. After almost 10 years the certificate proceedings were initiated, on basis of a document of renewal as appended to the counter affidavit. It is submitted on behalf of the petitioner that firstly, the loan was disbursed but misappropriated by the Bank Manager. Secondly, a reference to the agreement and the renewal letter would clearly show that attempts to forge signatures even made. On a simple examination of the signatures, prima facie, there is a material difference apart from the - 2 - fact that the renewal letter has not been filled up in material particulars. It is submitted that if the renewal letter is kept away from consideration then the proceedings itself become barred by limitation. Sri Ajay Thakur, learned counsel appearing in support of the writ petition has relied on instructions no. 10 issued by the Board of Revenue in relation to implementation of the Public Demand Recovery Act, which reads as follows : Certificate procedure not to be used where there is any doubt of debtor’s liability.-Requiring-Officers should bear in mind that the certificate procedure is intended only for the recovery of sums regarding which there is no doubt of the liability of the debtor. Cases in which the debtor is likely with a some show of reason, to deny his liability, should be reported with a view to institution of civil suits. No such certificate shall be made in respect of any demand the recovery of which is barred by any law of limitation for the time being in force. In the case of rent due to Wards and Government estate the period of limitation depends upon the Tenancy Act applicable and is determined - 3 - by Schedule III Part I, of the Bihar Tenancy Act, or Section 234 of the Chota Nagpur Tenancy Act, as the case may be. The period of limitation for certificate filed by the examiner of Local Account under the Local Fund Audit Act is three years from the date of the order of surcharge. In my view, as the certificate proceedings have been initiated petitioner would be well advised to file his detail objections taking all these grounds before the Certificate Court, who would apply his mind to the issues raised. He would then decide keeping in view the aforesaid instruction no. 10 issued by the Board of Revenue in summary proceeding under the Public Demand Recovery Act. The Certificate Officer is not a Court, though, purports to exercise powers of Civil Courts in money matters, detail evidences may be required to be taken and authenticity of documents to be judged for which the Certificate Officer is neither trained nor equipped. Once the matter is heard on all aspects a decision would be taken and communicated to the petitioner, who would have such remedies against them as may be available in law till such time the matter is not finally heard and decided by the Certificate Officer. No coercive steps shall be taken against the petitioner. It is, however, expected that the petitioner and the respondent-Bank would appear before the concerned Certificate Officer with a copy of this order of this Court on 29th of September 2008, who - 4 - would then fix the date for filing of detail objections in that regard and then proceed in accordance with law. Let a copy of this order be given to the learned counsel for the Bank. This disposes of the writ petition. Trivedi/ (Navaniti Prasad Singh,J.)