JUDGEMENT
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(1.)Leave granted.
(2.)The only question that falls for determination in this case is whether the proceedings for recovery initiated by U.P. Financial Corporation (hereinafter referred to as 'the Corporation') under the Uttar Pradesh Public Monies (Recovery of Dues) Act, 1972 (in short 'the U.P. Act') on 6-1-2001 are maintainable in view of Section 34(2) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (in short 'the Act').
(3.)Factual position sans unnecessary details is as follows :
Certificate was issued under the U.P. Act for recovery of certain dues from the appellant for its alleged failure to comply with the terms and conditions of loan granted to it : similar failure was alleged by three Directors and three guarantors. On 14-2-2001 Citation for recovery was issued by the Tehsildar, Varanasi, for recovery of the alleged dues as arrears of land revenue. Appellant challenged the said action before the Allahabad High Court in CMWP No. 13738 of 2001 on the ground that after the enactment of the Act, the proceedings were not maintainable. Reliance was placed on the provisions contained under Section 32(G) of the State Financial Corporation Act, 1951 (in short 'the Financial Act') to contend that no other proceeding is permissible to be taken under the Act. Reference was made to Sections 17 and 34 of the Act to substantiate his stand. Stand of the Corporation before the High Court was that alternative modes of recovery were prescribed under different statutes and one cannot stand on the way of the other mode. Choice was left upon to the Corporation to act either under the Act or under the modes permissible under the Financial Act. Proceedings initiated under the U.P. Act were covered by the said Act. A Division Bench of the High Court on consideration of the rival submissions held that the language of Section 34(2) of the Act placed the position beyond controversy and concluded as follows :
"The choice is clearly left open to the Financial Corporation which may proceed under the D.R.T. Act or may proceed under the other modes of recovering the debts as are permissible under the S.F.C. Act, i.e. it can proceed under the provisions of the U.P. Public Money (Recovery of Dues) Act."
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