Sudhir Agarwal, J. - (1.) THIS writ petition under Article 226 of the Constitution of India has been filed by six petitioners (5 are brothers, son of deceased Ram Bahadur who is also impleaded as petitioners No. 2) assailing order dated 27th September, 2002 passed by Commissioner, Bareilly Region, Bareilly upholding auction pursuant to recovery proceedings initiated by the Revenue Authorities for recovering dues of Panjab National Bank (hereinafter referred to as "Bank") and the order dated 26th July, 2004 passed by the Board of Revenue rejecting revision.
(2.) IT is said that WIMCO Limited (hereinafter referred to as "Company") had sponsored a scheme for plantation of poplar plant in Bareilly Region and other areas. The farmers were supplied plants by or at the instance of Company. The Bank also advanced loan to the concerned farmers on the recommendation of the Company, who had shown inclination in the aforesaid scheme i.e. plantation of poplar plants. The Bank, in furtherance of the aforesaid scheme, on the recommendation of Company, advanced loan to the petitioners to the tune of Rs. 72,500/-, payable in 5 yearly instalments from 1988 to 1992. It is said that the loan amount was not furnished directly to the petitioners rather it was paid to Company which supplied poplar plants to petitioners for plantation. The Company subsequently declined to purchase plants on the ground that the same were not fully grown up, as a result whereof petitioners failed to repay loan amount to the Bank. The bank issued recovery certificate to recover outstanding dues as arrears of land revenue. On 9th January, 1996, Revenue authorities attached plots No. 289 (area 1.135 hectare) and 11 (area 3.218 hectare). The petitioners filed writ petition No. 8014 of 1996 challenging recovery certificate dated 1.11.1995. It was disposed of vide judgment dated 1.3.1996 permitting petitioners to deposit Rs. 50,000/- within a month and remaining amount in five equal installments subject whereto recovery proceedings were stayed. The petitioners still failed to pay the amount. The auction proceedings were initiated by revenue authorities and the agricultural land in Gata No. 11 (area 3.218 situated at Village Sone Hega Nagla, Tehsil Aonla, Bareilly) was auctioned for Rs. 2,60,000 on 27.1.1997. The petitioners filed objection No. 34/94 before Commissioner, Bareilly which was dismissed on 27.9.2002. The revision thereagainst has been dismissed by another impugned order dated 26.7.2004.
(3.) ON behalf of respondent Nos. 1 to 4 a counter-affidavit sworn by Sri Vinit Kumar Srivastava, Tehsildar Aonla, Bareilly has been filed. It is said that loan application was submitted by petitioners on 23.4.1988 for poplar cultivation under the scheme known as NABARD's Farm Forestry Scheme, which was a project approved by NABARD and sponsored by the Company commonly known as "WIMCO NABARD Project". The application proposed planting of 1400 trees @ Rs. 120.70 and therefore a loan amount of Rs. 1,68,980/- was applied for against mortgage of agricultural land of the petitioners measuring about 10.75 acres. The application was filed by petitioner No. 1 Baldev and Sri Ram Bahadur father of petitioners 3 to 7. The Bank sanctioned loan of Rs. 1,68,980/-. The first installment was disbursed on 28th December, 1988 while last installment was disbursed on 22.7.1992. It was liable for repayment within 8 years. Upto 22nd July, 1992 a sum of Rs. 1,25,200/- was disbursed but further installment was not given since the petitioners were not respecting agreement between the parties. During 1992-93, trees were cut down and sold to private party. The Bank issued notice for depositing sale proceeds against loan amount but the petitioners failed. A notice was issued by the Bank on 7th September, 1994 which remained unheeded. The Company informed the Bank vide letter dated 15.10.1993 that petitioners had disposed off timber to private parties and have committed breach of contract. In the circumstances, recovery certificate was issued by the Bank on 26.12.1994 for Rs. 2,70,921.11 with interest upto 22.11.1994. On 1.11.1995 a revised recovery certificate was issued for Rs. 2,84,697/- under U.P. Agricultural Credit Act, (hereinafter referred to as "Act"). The petitioners sought indulgence of this Court by according to pay outstanding dues in instalments but despite this Court's judgment dated 1.3.1996, failed to comply the same. Plot No. 11 was auctioned on 27.1.1997 for Rs. 2,60,000/ - whereagainst petitioners' objection was rejected by Commissioner on 27.9.2002.;