- (1.) R. R. K. TVivedi and R. K. Singh, JJ. Heard learned Counsel for the petitioner, Shri I. M. Kushwaha, learned Counsel for respondent No. 3 and learned standing Counsel for respondent Nos. 1 and 2. Learned Counsel for the parties have agreed that this petition may be decided finally at this stage.
(2.) THIS petition has been filed chal lenging the recovery of the amount of Rs. 2, 61, 464 as arrears of land revenue on the basis of the citation dated 20-11-1997, Annexure 6 to the writ petition. Learned Counsel for the petitioner has submitted that the loan was sanctioned by mortgage of the properties of the Society and the amount cannot be recovered from the personal property of the Secretary of the Society or from any other property. Learned Counsel has relied on the provisions of Uttar Pradesh Public Moneys (Recovery of Dues) Act in support of the aforesaid submission. Learned Counsel has also placed reliance in case of Ashok Kumar Singh and others v. State of UP. and others, 1979 A. L. J. 203. Learned Counsel has pointed out that Khadi Gramodyog Board is included in the Appendix attached to the U. P. Public Moneys (Recovery of Dues) Act and Board is a notified Corporation under Sec tion 3 of the said Act. Shri I. M. Kushwaha, on the other hand, submitted that action of the respon dents to recover the amount as arrears of land revenue is under Section 35-A of U. P. Khadi and Village Industries Board Act, 1960 and in the present case the provisions of U. P. Public Moneys (Recovery of Dues) Act, 1972 are not applicable. He also sub mitted that the Division Bench case relied on by the petitioner pertains to Section 4 of the Public Moneys (Recovery of Dues) Act, and it is not applicable to the present case.
(3.) WE have considered the submis sions of the learned Counsel for the par ties. Section 35-A of the U. P. Khadi and Village Industries Board Act, 1960 (hereinafter referred to as the Act) reads asunder: "35-A. Where any amount is recoverable by the Board on account of any loan or advance or grant made by it for the purpose of develop ment of Khadi and Village Industries, the same may, without prejudice to any other remedy provided bylaw, be recovered as arrears of land revenue. " From a perusal of the aforesaid Section 35-A, it is clear that the Act, under which the Khadi Gramodyog Board has been established, itself contains provision for recovery of the amount as arrears of land revenue.-However, it is subject to condition that loan, advance or grant made by the Board, should be for the purpose of development of Khadi and Village In dustries. It is not disputed that in the present case, the amount of Rs. 1, 20, 000 was given to petitioner society for con struction of building for Iron and wood cottage Industries. The loan was thus for development of village industries and it could be recovered as arrears of land revenue under Section 35-A of the Act.;