Allahabad High Court
VIRENDRA KUMAR SHARMAversusTHE STATE OF U.P. AND 2 OTHERS
- Decided
- Bench
- VINOD DIWAKAR
Holding
The court ordered that the petitioner may repay the outstanding loan in 25 equal monthly installments, staying recovery proceedings, with the order to be vacated upon two consecutive defaults.
Summary
The petitioner, a marginal farmer, sought a writ of mandamus directing the respondent bank to accept repayment of his Kisan Credit Card loan of Rs. 12,23,566 in reasonable installments. He argued that his age, limited means and inability to pay the entire amount in a lump sum warranted relief. The bank did not oppose the request, subject to strict adherence to a payment schedule. The High Court held that justice required allowing the petitioner to clear the debt in 25 equal monthly installments, staying the recovery proceedings, but stipulated that default on two consecutive installments would vacate the order. Consequently, the petition was disposed with the stipulated directions.
Issues considered
- Whether a writ of mandamus can be issued to compel a bank to accept loan repayment in installments under the circumstances of the petitioner.
- Whether the court can stay recovery proceedings pending compliance with an installment payment schedule.
Subjects
- mandamus
- loan repayment
- installment plan
- agricultural loan
- Kisan Credit Card
- recovery proceedings
- equity
- high court
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - C No. - 10180 of 2026
Virendra Kumar Sharma
.....Petitioner(s)
Versus
The State Of U.P. And 2 Others
.....Respondent(s)
Counsel for Petitioner(s) : Satya Prakash Singh
Counsel for Respondent(s) : C.S.C., Ramesh Kumar Shukla
Court No. - 37
HON'BLE VINOD DIWAKAR, J.
1. Heard learned counsel for the petitioner, Shri Ramesh Kumar Shukla,
learned counsel for the respondent-bank.
2. The instant petition has been filed with a limited prayer seeking direction
in the nature of writ of mandamus commanding the respondent no.3 to take
the loan amount of the petitioner in easy installment.
3. Learned counsel for the petitioner submits that the petitioner is a marginal
farmer, owning and cultivating a small parcel of agricultural land situated in
Village-Rudhauli Kala, Rudranagar, Rudhauli Khurd, District Basti. In order
to meet agricultural and allied needs, the petitioner availed three Kisan
Credit Card (KCC) loans from respondent no.3, bearing Loan Account Nos.
5200066043, 502000600442 and 5020006071441. The said facilities were
duly sanctioned and disbursed by the respondent bank. However, owing to
acute financial constraints and adverse circumstances beyond the control of
the petitioner, he could not adhere to the repayment schedule within the
stipulated time. Consequently, a recovery citation has been issued against the
petitioner, reflecting an outstanding liability of Rs. 12,23,566/-.
4. Learned counsel further submits that the petitioner is a poor agriculturist,
aged about 56 years, having limited means of livelihood and no substantial
source of income, and thus is incapable of discharging the entire outstanding
amount in one lump sum. The petitioner is willing to liquidate the
outstanding dues and undertakes to repay the entire amount in an easy
installments. Accordingly, it is prayed that the petitioner may be granted
indulgence by permitting him to clear the outstanding liability in 25 easy and
WRIC No. 10180 of 2026
2
reasonable installments, in the interest of justice and equity.
5. On the other hand, learned counsel for respondent no. 3 has not opposed
the prayer of the petitioner for grant of reasonable time to liquidate the
outstanding dues, subject to the condition that the petitioner adheres strictly
to the payment schedule.
6. Considering the facts and circumstances of the case, the nature of the
dispute, and the willingness shown by the petitioner to clear the outstanding
dues, this Court is of the view that ends of justice would be served by
granting an opportunity to the petitioner to repay the amount in installments.
Accordingly, the petitioner is permitted to deposit the entire outstanding
amount in 25 equal monthly installments. The first installment shall be
deposited within a period of one month from today, and the subsequent
installments shall be deposited by the 15th day of each succeeding month.
During the aforesaid period, the impugned recovery proceedings shall
remain stayed.
7. It is made clear that in case of default in payment of any two consecutive
installments, this order shall automatically stand vacated and the respondent-
bank shall be at liberty to proceed in accordance with law.
8. With the aforesaid observations and directions, the present petition stands
disposed of.
April 16, 2026
A. Tripathi
(Vinod Diwakar,J.)
Digitally signed by :-
AKHILESH TRIPATHI
High Court of Judicature at Allahabad
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