K.J. Shetty, C.J. - (1.) The petitioners are Primary Silk Weavers Handloom Co-operative Societies. They were given what is termed as share capital loan. The loan was given to the societies for the purpose of distribution to individual silk weavers who are the members of the society. The loan was advanced under an agreement and clause 6 of the agreement provides as follows : "The creditor may realise the sum to be declared by the said Director of Handloom and Textitles Uttar Pradesh under the provisions herein- before contained as when due to the creditor on account of the loan by sale without the intervention of Court of the property furnished as security and in the event of the said property being insufficient the the balance due may be recovered from the borrower as arrears of land revenue."
(2.) The agreement also contains terms of repayment of loan. The last instalment would be payable on February 23, 1987 but before the said date the respondents started recovery proceedings. Notice has been issued to the chairman of the society calling upon him why the loan should not be recovered as arrears of land revenue. It is also stated that the steps are being taken to arrest the chairman of the society and put him in jail.
(3.) Various contentions have been urged by Sri D. P. S. Chauhau, learned counsel for the petitioners challenging the recovery proceedings. We do not, however, think it necessary to examine all these contentions since those petitions could be conveniently disposed of on the ground that the recovery is being made in contravention of the terms of the loan.;