Satish Chandra, J. - (1.) This petition under Article 226 of the Constitution prays that by a writ in the nature of mandamus Respondents be directed not to realise the money as arrear of land revenue by arrest of the Applicant or by sale of the property without due process of law. At the hearing learned Counsel for the Petitioner confined his relief to realisation of the money by arrest of the Petitioner.
(2.) The Petitioner applied for and obtained a loan of Rs. 4, 000/ - form the State under an agreement on 29 -9 -1961. The loan was repayable in instalment. The agreement provided that in case of default the loan could be realised as arrear of land revenue by sale of the property hereby given in security without the intervention of the court. The petition states that because of various reasons the Petitioner was unable to make payment of the instalments and the Respondents are realising it as an arrear of land revenue. During proceedings for realisation, a process for the arrest of the Petitioner has been issued. The Petitioner's grievance is that under the contract the Respondents are entitled to realise the loan only by sale of the property and not by the Petitioner's arrest. He has also stated that unlike loans given under Agriculturists Loans Act, Land Improvement Loans Act, Legal Authorities Loans Act, Income -tax Act and other similar Acts where there is a specific statutory provision for realisation of the loan by processes including arrest, the present loan cannot be realised by the Petitioner's arrest, in the absence of any statutory authority. Learned Counsel has relied upon a decision of a learned single Judge of this Court in Civil Misc. Writ Petition No. 2306 of 1963 decided on 8 -9 -1965 wherein it was held that there is no statutory provision entitling the Government to realise its dues as arrear of land revenue and the right to use this procedure arises purely by way of contract under the terms of agreement entered into by the Petitioner. Under the agreement, there was no authority to realise the loan by arrest of the Petitioner.
(3.) Learned Counsel for the Respondents has invited my attention to the Public Moneys (Recovery of Dues) Act, No. XV of 1965. This Act was published in the gazette on 12 -4 -1965. Sec. 3 of this Act reads as follows: 3. Recovery of certain dues as arrears of land revenue: (1) Where any person is party - (a) to any agreement relating to a loan, advance of grant given to him by the State Government or the Corporation by way of financial assistance, or (b) to any agreement relating to a guarantee given by the State Government or the Corporation in respect of a loan raised by an industrial concern, or (c) to any agreement providing that any money payable there under to the State Government shall be recoverable as arrears of land revenue and such person - (i) makes any default in repayment of the loan or advance or any instalment thereof, or (ii) having become liable under the conditions of the grant of refund the grant or any portion thereof, makes any default in repayment of such grant or portion or instalment thereof, or (iii) otherwise fails to comply with the terms of the agreement, - then, in the case of the State Government, such officer as may be authorised in this behalf by the State Government by notification in the official Gazette and in the case of the Corporation, the Managing Director thereof, may, without prejudice to any other mode of recovery under any other law for the time being in force, send a certificate to the Collector, mentioning the sum due from such person and requesting that such sum together with costs of the proceedings be recovered as if it were an arrear of land revenue. (2) The Collector on receiving the certificate shall proceed to recover the amount stated therein as an arrear of land revenue. Clause (a) of Sub -section (1) of Sec. 3 applies to the Petitioner because the Petitioner was a party to an agreement relating to a loan given to him by the State Government. Sub -Clauses (i) and (iii) of Clause (c) and of Sec. 3(1) are also attracted because the Petitioner has made defaults in repayment of the loan and has failed to comply with the terms of the agreement. The operative part of the Sec. hence comes into play. This provision entitles the State Government or its authorised officer to send a certificate to the Collector mentioning the sum due and requesting that such sum be recovered as if it were arrear of land revenue. This Act, therefore, provides a statutory authority to the Respondents to recover the loan as an arrear of land revenue.;