IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL Writ Petition No. 1170 of 2008 (M/S) Daulat Ram Upreti S/O Late Sri Udai Ram Upreti, R/O Village Dewal, P.O. Kot, Patti Sitonsyun, Pauri, Pauri Garhwal. …… Petitioner. Versus Manager, Punjab National Bank, Khandu-sain Branch, Block Pauri and another. … Respondents. Sri Dinesh Gahtori, learned counsel for the petitioner. Sri L.K.Tiwari, learned counsel for the respondent no.1-Bank. Sri K.P.Upadhyay, learned Additional C.S.C. for the respondent no.2. Date July 17, 2008. Hon’ble B.S.Verma, J. Heard Sri Dinesh Gahtori, learned counsel for the petitioner, Sri L.K.Tiwari, learned counsel for the respondent no.1 and Sri K.P.Upadhyay, learned Additional Chief Standing Counsel for the state-respondent no.2 and perused the record. This writ petition has been filed for the following reliefs:- i) Issue a writ, order or direction in the nature of certiorari calling for record and quashing the impugned recovery citation dated 30-6- 2008 issued by respondent no.2 contained as Annexure No. 7 to the writ petition. ii) Issue a writ, order or direction in the nature of mandamus directing the respondents to give sufficient time to the petitioner for depositing the loan amount. iii) Issue a suitable writ, order or direction which this Hon’ble Court may deem fit and proper in the circumstances of the case be passed in favour of the petitioner. iv) To award the cost of present writ petition in favour of the petitioner. According to the petitioner, he applied for a loan of Rs. 2,00,000/- under the margin money loan Special Employment Scheme of U.P. Khadi and Gramodyog Board (for short the Board) and accordingly loan worth Rs. 2,00,000/- was sanctioned on 25-7-2005 in favour of the petitioner for installation of a small scale industry. The loan amount was released by the Branch Manager, Punjab National Bank Khandu-sain. It has been stated that out of amount of Rs. 2,00,000/-, Rs. 60,000/- was the subsidy amount as per the scheme. The amount of Rs. 85,000/- was released on 13- 12-2005 and Rs. 45,000/- was disbursed on 25-2-2006, but the respondent-Bank stopped to release rest of the amount just to harass the petitioner. On the notice having been sent to the respondent bank, amount of Rs. 50,000/- was disbursed on 15.5.2006 and Rs. 10,000/- on 17-5-2006 while the rest amount of Rs. 10,000/- had not been released in favour of the petitioner. The agreed rate of interest between the parties was 10.25%. The petitioner started to pay the loan amount in instalments and has deposited the amounts of Rs. 5,000/-, 2,800/-, 2,000/-, Rs. 10,000/-, Rs. 5,000/- with a total of Rs. 24,800/- on different dates and the petitioner has also deposited the subsidy amount of Rs. 60,000/-. A Photostat copy of bank statement entries made in the pass-book has been annexed as Annexure No. 4 to the writ petition. Ultimately, the respondent no. 2 issued a recovery citation on 30-6-2008 against the petitioner directing him to deposit sum of Rs. 2,06,922/- vide Annexure No.7. The petitioner is ready and willing to pay the entire outstanding amount of loan along with recovery charges in easy instalments. In the course of arguments, learned counsel for the respondent no.1-Bank has submitted that the Bank has no objection if the entire outstanding loan amount along with recovery charges is paid by the petitioner in monthly instalments by the close of the current financial year. On the other hand, learned counsel for the petitioner has submitted that the respondent no.1-Bank be directed to adjust the payments already made by the petitioner as shown in the pass-book entries (Annexure No. 4). In the above facts and circumstance of the case, the petitioner is directed to repay the entire outstanding loan amount plus recovery charges in eight equal monthly instalments before the recovery officer. The first monthly instalment shall be payable by the 15th day of August, 2008 and the subsequent instalments shall fall due on 15th day of every month. The last monthly instalment shall fall due on 15th day of March 2009. It is also directed that the payments already made by the petitioner, if any, shall be adjusted towards payment of outstanding loan amount by the respondent- Bank. In case of default in payment of any of the monthly instalments, as directed above, the respondents would be at liberty to recover the entire outstanding loan amount plus recovery charges in lump sum. If the payment is made by the petitioner, as directed above, the recovery citation dated 30- 6-2008 (Annexure No. 7) shall not be given effect to. With the above direction, the writ petition is disposed of finally. (B.S.Verma, J.) RCP