KANHAIYALAL DABRIWALA Vs. STATE OF BIHAR
LAWS(PAT)-1981-8-8
HIGH COURT OF PATNA
Decided on August 18,1981

KANHAIYALAL DABRIWALA Appellant
VERSUS
STATE OF BIHAR Respondents


Cited Judgements :-

BIHAR STATE CREDIT AND INVESTMENT CORPORATION LTD VS. RAJANI RANJAN SAHAU [LAWS(PAT)-2005-12-12] [REFERRED TO]


JUDGEMENT

Birendra Prasad Sinha, M.P.Verma, JJ. - (1.)This is an application under Articles 226 and 227 of the Constitution of India for issuance of a writ of certiorari quashing a certificate proceeding including the requisition as contained in Annexures 1, 2, 3, 5 and 6 and also for quashing the order contained in Annexure 8. The short facts leading to this application are as follows :
(2.)Under an agreement dated 24th November, 1970, the petitioner took a loan of Rs. 40,000 from the United Commercial Bank, Jogbani branch, for the purpose of setting up an industry. The mill could not properly and profitably run, but the petitioner made certain payments towards the loan between 11th September, 1970 and 21st July, 1971 He received legal notice dated 15th April, 1975 for repayment of the entire dues from the Bank. It appears that the Bank sent a requisition under the Bihar and Orissa Public Demands Recovery Act, 1914 (hereinafter referred to as 'the Act') on 17th December, 1975 on the basis of which a certificate case no. 184/U Bank/75-76 was registered. This requisition was sent to the Certificate Officer, Purnea. As the jurisdiction over the case was that of the Certificate Officer, Araria, the requisition addressed to the Certificate Officer, Araria, in Form I of Schedule 2 of the Rules was filed and other certificate case seems to have been registered bearing Certificate Case no. -184/U Bank/75-76 for the same dues 184/U Bank/70-77 petitioner was served with a notice and he filed certain objections challenging the authority of the Bank to realise the loan in question under the provisions of the Act. Ultimately, it appears that the plants and machineries of the petitioner's mill were attached and by an order dated 18th November, 1976 it was directed to issue notice to effect auction sale of the attached properties. However, on an application made by the petitioner, the Certificate Officer heard the parties and by his order dated 18th December, 1976 he rejected the objection of the petitioner. Some other steps seem to have been taken on behalf of the petitioner to which we are not concerned. Ultimately, the petitioner filed an application before the Collector which was registered as Certificate Revision case no. 248 of 1977-78, The respondent-Collector by his order dated 4th March, 1978 dismissed the petition with an observation that the petitioner should first deposit 40 per cent of the dues and then come up in appeal when his objections could be properly taken into consideration. The main objections which were taken by the petitioner before the Collector were that the Bank was required to pay court-fee in accordance with the provision of Section 5 of the Act. The other objection was that the requisition should have been in Form 2 instead of Form I. On the second question, the learned Collector found in favour of the petitioner that the requisition should have been in Form 2 and not in Form I. But on the first question, the learned Collector found against the petitioner and held that the loans advanced by the Bank after the nationalisation became public demands and were payable to the Government and, therefore, court-fee was not necessary to be paid.
(3.)The records of this case were called for and after perusing the same, Mr. Bharuka, learned counsel appearing on behalf of the petitioner, did not pursue the question regarding the the filing of the requisition in Form I or 2. It is, therefore, not necessary to go into that question.


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