Court No. - 27 Case :- MISC. BENCH No. - 628 of 2010 Petitioner :- Ram Chandra Mishra S/O Late Ram Baran Mishra & Ors. Respondent :- Baroda U.P. Gramin Bank,Raibareli Thru Manager & Ors. Petitioner Counsel :- Ram Prakash Verma Respondent Counsel :- C.S.C.,Avdhesh Shukla Hon'ble Devi Prasad Singh,J.
Hon’ble Devendra Kumar Arora,J.
Admit.
Learned Chief Standing Counsel has accepted notice on behalf of opposite
party No.5. Issue notice to the opposite party No.1 to 4.
Let counter affidavit be filed within four weeks, one week then for the
rejoinder. List thereafter for peremptory hearing.
It has been submitted by the petitioners’ counsel that the respondent No.4 is
the principal borrower who has taken loan from the respondent bank. On
account of default in payment of dues, recovery proceedings have been
initiated. The grievance of the petitioners is that instead of taking any coercive
action against the respondent No.4, the respondent bank is proceeding against
the petitioners to recover the dues in question. It is further submitted by the
petitioners’ counsel that though the liability is co-extensive of the guarantor
and the principal borrower but the respondents are proceeding against the
guarantor like the petitioners before exhausting remedy against the principal
borrower. The petitioners’ counsel has relied upon the judgment of Hon’ble
Supreme Court in the case reported in (2006)10 SCC 332 Ashok Mahajan
versus State of U.P. and others. The argument advanced by the learned
counsel for the petitioners requires hearing.
Accordingly, till further orders of this Court, further recovery proceedings
against the petitioners shall remain stayed. However, it shall be open for the
respondent bank to recover dues from the petitioners who are a guarantor in
the event of failure to recover the entire dues from the principal borrower in
accordance with law by adopting appropriate coercive method.
Order Date :- 27.1.2010
kkb/