Allahabad High Court
KAILASH CHANDRA CHAUDHARYversusSTATE OF U.P. AND 3 OTHERS
- Decided
Holding
The court held that the petitioner may discharge the remaining recovery amount in three quarterly installments without coercive action or recovery charges, subject to default provisions.
Summary
The petitioner, Kailash Chandra Chaudhary, filed a writ petition challenging a recovery certificate issued by Union Bank of India directing him to pay Rs. 6,65,500. The petitioner had already deposited Rs. 1,50,000 and sought additional time to pay the balance. The court, after hearing both sides, consented to a settlement whereby the bank would issue a fresh account statement reflecting the deposit and the petitioner would pay the remaining amount in three equal quarterly installments starting 1 January 2027. The court ordered that no recovery charges be imposed and that no coercive action be taken during the installment period, with the bank to withdraw recovery proceedings once payments are made. In case of default, the bank may resume recovery actions.
Issues considered
- Whether the petitioner is entitled to a stay of coercive action and a payment schedule for the recovery amount
- Whether recovery charges can be waived pending payment of the balance
Subjects
- Recovery of dues
- Banking
- Writ petition
- Stay of execution
- Installment payment
- Coercive action
- Interest
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - C No. - 35101 of 2026
Kailash Chandra Chaudhary
.....Petitioner(s)
Versus
State Of U.P. And 3 Others
.....Respondent(s)
Counsel for Petitioner(s) : Ravindra Prakash Srivastava
Counsel for Respondent(s) : Ravindra Kumar Srivastava, Ashish
Agrawal, C.S.C.
Court No. - 5
HON'BLE PRAKASH PADIA, J.
HON'BLE VIVEK SARAN, J.
1. Heard Sri Ravindra Prakash Srivastava, learned counsel for the
petitioner, Sri Ravindra Kumar Srivastava, learned counsel for the
respondent - Bank and learned Standing Counsel for the State-
respondents.
2. Pursuant to order dated 03.09.2026 an affidavit has been filed by
learned counsel for the petitioner today in the Court. The same is taken on
record.
3. It is stated in paragraph-4 of the aforesaid affidavit that a sum of Rs.
1,50,000/- has already been deposited by the petitioner on 16.09.2026
with the respondent no. 4, namely, Union Bank of India.
4. The recovery citation has been issued on 24.07.2026 by the respondent
no. 3, copy of which is appended as Annexure-3 to the writ petition. By
the aforesaid recovery certificate the petitioner was directed to deposit a
sum of Rs. 6,65,500/-.
5. It is argued by the learned counsel for the petitioner that he is ready and
willing to make the entire payment but some breathing time be granted,
which has not been opposed by the learned counsel for the respondent -
Bank.
6. In this view of the matter, the writ petition is disposed of with the
consent of the parties on the following terms:
WRIC No. 35101 of 2026
2
(i) The respondent no. 4 shall provide a fresh statement of account to the
petitioner after deducting the amount so deposited by the petitioner.
(ii) If it is so, the petitioner will deposit the remaining amount with the
respondent no. 4 in three equal quarterly installments started w.e.f.
01.01.2027. The last installment would be deposited with balance
amount and upto date interest.
(iii) No recovery charges shall be recovered from the petitioner by the
respondent authorities.
(iv) Till the period prescribed for depositing the aforesaid amount and
thereafter during the period of deposit of installments, no coercive action
shall be taken against the petitioner and once the petitioner deposits the
amount, as directed above, the Bank shall proceed to withdraw the
recovery proceedings initiated against the petitioner.
(v) In case, the petitioner defaults in depositing the initial amount or
thereafter installments within the stipulated period, it will be open for the
respondents to start recovery proceedings against the petitioner.
(Vivek Saran,J.) (Prakash Padia,J.)
September 17, 2026
gp
Digitally signed by :-
GANESH PRAKASH
High Court of Judicature at Allahabad
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