Recovery
jayeshmankodi
(Querist) 06 April 2016
This query is : Resolved
Bank has filed a civil suit for Recovery for an agricultural loan now the defendent advocate has raised objection that under the Gujarat Public Money Recovery Act First step is to approach the collector who will call the defaulter and do the procedures
without approaching collector No Direct Suit can be filed in Civil Court
so is it mandatory to approach the collector first? whether bank has to withdrawn the present suit or any defense is there? pls.guide
jayesh
J K Agrawal
(Expert) 07 April 2016
Generally a civil suit is not preferred for recovery of loan when agricultural land is involved. The reason is the Ag land is not attachable.
To overcome this problem almost all the states in India has one law named RODA 'Removal of Difficulties Act'. You are to look at provisions of this act of your concerning state. In that law also you are not to go to the collector first. You are to go to court and after judgment of court the role of collector starts.
Devajyoti Barman
(Expert) 07 April 2016
Since local law is involved it will be better of you take help of a local lawyer.
The Special Law kike the one you have mentioned can oust the jurisdiction of civil court which is established principle of law.
Rajendra K Goyal
(Expert) 07 April 2016
In most of the states, Banker has the option to approach either collector to recover the outstanding as pending land revenue or file case for recovery in Court.
Due to political pressure or otherwise Collector does not take much interest in recovering money from agriculturists. Though the avenue is easy and less expensive but due to above reason banks prefer to approach civil court. Moreover, collector abstain to give certificate to approach civil court for recovery.
In the given case Bank can approach civil court without approaching collector till approaching collector is not mandatory in the Model Act adopted by the State.
Generally filing recovery certificate with collector and filing civil suit, only one avenue is adopted by the Bankers.
