Non-compliance with court conditions for staying recovery proceedings can justify the dismissal of a writ petition under Article 226 of the Constitution.

( 1 ) THIS writ petition under Article 226 of the Constitution has been filed for quashing of the citation dated 29. 12. 2000 asking the petitioners to deposit Rs. 8,76,449.

( 2 ) THE petitioner Nos. 1 to 4 are partners of petitioner No. 5 which is a registered partnership firm carrying on business in Sirsa Bazar. Allahabad. The firm opened a current account in the state Bank of India. Branch Sirsa Bazar, and was granted a cash credit facility with a limit of Rs. 6 lakhs. An overdraft facility was also provided by the bank. It appears that the petitioners did not keep their account in order and did not deposit the dues of the bank. The bank accordingly sent a certificate to the Collector to recover the amount under U. P. Public Moneys (Recovery of dues) Act, 1972. The Collector accordingly initiated proceedings to recover the amount as arrears of land revenue and Tehsildar, Meja, thereafter issued a citation to the petitioners asking them to deposit the amount which has been impugned in the present writ petition.

( 3 ) SRI R. N. Kesari, learned counsel for the petitioners has submitted that the provisions of U. P. Public Moneys (Recovery of Dues) Act, 1972, cannot be invoked to recover the dues of the bank. He has placed reliance on a Full Bench decision in Smt. Sharda Deui v. State of U. P. , 2001 alr 156, wherein it has been held that a banking company can recover only such loan under u. P. Public Moneys (Recovery of Dues) Act. 1972, which has been advanced or paid under a state Sponsored Scheme and not any other type of loan. Learned counsel has urged that since the petitioners had not been given loan under any State Sponsored Scheme but had been given a cash credit facility, the dues of the bank cannot be recovered under the aforesaid Act. There can be no quarrel with the proposition of law urged by the learned counsel for the petitioners. The petitioners had not been given any loan by the State Bank of India under any State Sponsored scheme but had been given a cash credit facility and, therefore, the provision of U. P. Public moneys (Recovery of Dues) Act, 1972, cannot be availed of in order to recover the dues of the bank. But the question still remains whether in the facts and circumstances of the case, the petitioners are entitled to claim such a relief in the present writ petition under Article 226 of the constitution.

( 4 ) THIS petition was heard for admission by a Division Bench on 8. 1. 2001 when an interim order was passed and the relevant portion thereof is being reproduced below.

"shri R. N. Kesari, learned counsel for the petitioner made a statement that the petitioners will deposit Rs. 2,00. 000 (rupees two lacs) in cash or by bank draft with the Branch Manager, State bank of India, Sirsa, Allahabad and another amount of Rs. 2,00,000 (rupees two lacs) in cash or by bank draft with the said Branch Manager on or before 10. 2. 2001 and 10. 3. 2001. respectively, whereafter he proposes to file a representation. Which may be decided by the said bank in accordance with law and rules and the guidelines issued by the Reserve Bank of India from time to time. Shri A. K. Mishra, appearing for the bank has said that for the same relief the petitioner had filed a suit, which has also been dismissed and appeal is pending. To this Shri Kesari stated that the suit was only for interest amount and in case a settlement is reached, the petitioner will withdraw the appeal. Relying upon the aforesaid statement of Shri Kesari, the recovery proceedings are stayed till 10. 2. 2001 to enable the petitioner to deposit rupees two lacs in cash or by bank draft with the branch manager concerned of the said bank. In the event of non-payment, the recovery proceedings shall stand automatically renewed on 11. 2. 2001 and interim stay application in writ petition shall be deemed to be dismissed. . . . . . . . . . . . . . . . . . . . . . . "

( 5 ) WHEN the case was taken up for hearing, learned counsel for the bank made a stat