- (1.) M/s Guru Nanak Beverages & Company has come up through this writ petition under Article 226 of the Constitution of India through its partner Sardar Balwant Singh challenging recovery proceedings enarnating from outstanding dues in the two bank accounts the petitioner is maintaining in Syndicate Bank, Civil Lines, Allahabad. The prayer in the writ petition is that the recovery certificate dated 14th December, 1995, should be quashed by a writ of certiorari and that a mandamus should issue that no recovery proceedings should be done through coercive methods against any of the partners of the firm inasmuch as the recovery certificate be declared illegal as it is.
(2.) WHEN this writ petition was filed on 3rd April, 1996, a counter affidavit was called from the Syndicate Bank which is represented by Sri P. K. Singhal, Advocate, which has been filed. A rejoinder affidavit has also been filed. It may, however, be mentioned that no counter affidavit has been filed on behalf of the District Magistrate or the lahsildar, Allahabad though Sri K. S. Kushwaha, learned Standing Counsel, has appeared on their behalf. As prayed by the learned Counsel for the parties, the writ petition is finally disposed of at the admission stage. Sri K. L. Grover, learned Counsel for the petitioner, has been heard at length in support of the petition. Sri P. K. Singhal has also been heard at substantial length on behalf of the Syndicate Bank while Sri K. S. Kuswaha, learned Standing Counsel, has espoused the cause of the State officials. The short facts are that the petitioner, admittedly, continued with two Bank Account Nos. 88/91 and 66/81 with the Syndicate Bank, Civil Lines, Allahabad (hereinafter referred to as 'the bank' ). Both the accounts had over-draft facility, which is admitted to the bank. The details of the over-draft are omitted, as they are unnecessary for decision of the real dispute. The present proceedings have commenced through the recovery certificate issued by the bank, a copy of which has not been filed because, according to Sri Grover, it was not available with the petitioner while it is not disputed that those proceedings had actually been started by the bank. It may further be mentioned that no document has been filed along with the counter affidavit showing the legal basis for issuing the recovery certificate.
(3.) HOWEVER, Annexure '12' to the writ petition appears to be the copy of the letter of the bank dated 13th January, 1996, addressed to the Additional District Magistrate, Allahabad, saying that a total sum of Rs. 12,22,054 plus interest and Rs. 3,78,470 plus interest are due against the petitioner under both the accounts, men tioned above. The total will be Rs. 16,00,524 plus interest. The petitioner says in paragraph 7 of the writ petition that his factory in curred the wrath and displeasure of certain hoodlums on the assassination of the Prime Minister late Smt. Indira Gandhi with the result that tremandous amount of loss was suffered. It is pleaded that the Central Government came out with a scheme to help those distitutes and the banks were directed to extend helping hand to those who lost because of disturbances of 1984. The true extracts from paragraphs 7,8 and 9 of the writ petition, if summarised, would indicate that riots took place throughout the country after the sad demise of Smt. Indira Gandhi, specially in the Northern India. The Central Government issued directives to lead banks to help the affected persons through the banks concerned. The petitioner's firm was also identified as an affected person vide letter dated 8th January, 1985, issued by the Bank of Baroda, that is, the lead bank. This letter was addressed to the Syndicate Bank. Under the Central Government Scheme, the major concessions announced were that the rate of interest would be reduced to 1% with effect from 1st November, 1984, to 31st March, 1992. Similarly, after 31st March, 1992, the rate of interest would be calcu lated at normal rate. It provided further that the amount would be repayable in five years' instalments commencing from the date of adjustment. These concessions were announced through notification dated 3rd November, 1993, a copy of which has been filed as Annexure '2' to the writ petition.;