S.S.KANG, J. - (1.) Whether a loan advanced by the Haryana Khadi and Village Industries Board (hereinafter called 'the Board') to a person can be recovered as arrears of land revenue under Sec. 67 of the Punjab Land Revenue Act, 1887 is the spinal issue in this writ petition. It also falls for determination as to whether a loanee who has not been able to repay the loan advanced to him by the Board can straightway be arrested and detained for non-payment of the loan and other dues without taking recourse to other modes of recovery like sale of mortgaged property.
(2.) A brief reference to skeletal facts is a prefectory necessity.
(3.) The petitioners had taken loans from the Board for the development of Gur and Khandsari Industries. They had mortgaged their immovable properties as securities for the repayment of the loans. Member Secretary of the Board addressed letters to the Deputy Commissioner, Ambala, requesting him to recover the monies due from the petitioners to the Board as arrears of land revenue. A copy of one of the letters is attached as Annexure- P1/A with the writ petition. It has been stated therein that Maghi Ram, petitioner No. 3, was advanced a loan of Rs. 15,000/- by the Board for Gur and Khandsari Industries on Jan. 27, 1983. It was stipulated at the time of advancement of loan that in case of non-fulfilment of the conditions governing the advance of loan the loanee was liable to repay the full amount of loan to the Board. The loanee had not complied with the conditions nor had he repaid the money to the Board. It was mentioned that the loanee had misutilised the funds. He had not undertaken any works and had defaulted in the repayment of the loan. A sum of Rs. 17,500/ - (Rs. 15,000/- as principal and Rs. 2,500/- as simple interest) was sought to be recovered from the loanee under S.32-A of the Punjab Khadi and Village Industries Board, Act, 1955 (for short, 1955 Act) as arrears of land revenue. It was requested that the sum of Rs. 17,500/- may be recovered from the loanee as early as possible. It was mentioned that immovable properties of the loanee (list whereof was given) was mortgaged with the Board. The recovery of the said amount due to the Board should be effected under S.3(8) of the Punjab Land Revenue Act because provision has been made to recover the amount from the loanee or his property under S.3(8) as arrears of land revenue.;