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IN THE HIGH COURT OF ALLAHABAD
Sudhir Narain, J.
VIDYA DEVI - Appellant
Versus
COLLECTOR, MAHOBA - Respondents
C. M. W. P. 8365 Of 1999
Decided On : 04/23/1999
U. P. ZAMINDARI ABOLITION AND LAND REFORMS ACT, 1950 - SECTION 279(2) - U. P. REVENUE RECOVERY RULES, 1966 - RULE 8(B) AND (C) - COLLECTION CHARGES - RECOVERY OF ARREARS OF LAND REVENUE - INTERPRETATION AND APPLICATION.
Fact of the Case:
Petitioner challenged a citation notice demanding Rs. 12,277 plus interest and other charges, claiming that collection charges could not be demanded before the property was auctioned.
Finding of the Court:
The court held that collection charges could not be demanded before the property was auctioned, as the cost of recovery was provided for under Section 279(2) of the U. P. Zamindari Abolition and Land Reforms Act, 1950 and the U. P. Revenue Recovery Rules, 1966.
Issues: Whether collection charges could be demanded before the property was auctioned.
Ratio Decidendi: The court interpreted Section 279(2) of the U. P. Zamindari Abolition and Land Reforms Act, 1950 and the U. P. Revenue Recovery Rules, 1966 to hold that the cost of recovery was provided for under these provisions and that collection charges could not be demanded before the property was auctioned.
Final Decision: The court quashed the citation notice and granted the petitioner one month to deposit the amount due.
( 1 ) THE petitioner seeks writ of certiorari quashing the citation notice dated 18. 1. 1999 demanding sum of Rs. 12,277 plus interest and other charges.
( 2 ) THE petitioner took loan for a pumping set, from Allahabad Bank, respondent No. 3. As the petitioner failed to pay the amount, recovery certificate was sent and respondent No. 2 issued a citation for recovery of Rs. 12. 277.
( 3 ) THE contention of learned counsel for the petitioner is that respondent No. 2 is demanding collection charges at ten per cent of the amount mentioned in the recovery certificate. It is contended that the property has yet not been auctioned and unless the auction takes place, the petitioner is not liable to pay any collection charges. He has placed reliance upon the decision of the Division Bench in Mirza Javed v. U. P. Financial Corporation, Kanpur and another, AIR 1983 Alt 234, wherein it was held that where the State Financial Corporation sent a certificate under Section 3 of U. P. Public Moneys (Recovery of Dues) Act to the Collector for recovery of the loan advanced by it as arrears of land revenue, it cannot include the collection charges in the certificate in view of Rule 284 of U. P. Zamindari Abolition and Land Reforms Rules. The recovery proceedings start only if the recovery certificate is received by the Collector and thereafter he proceeds to realise the amount from the person against whom the recovery certificate has been issued. At the stage of preparation of the recovery certificate, the question of collection of recovery charges does not arise and in that context the Court observed :
"what would be the actual cost of the proceedings would be naturally ascertained when the costs are actually incurred. This is also clear from Rule 284 (2) of the U. P. Zamindari Abolition and Land Reforms Rules which says that charge shall be levied for recovery upon such amount not exceeding the total sum due for recovery as may be realised by the sale at the rate of 3 n. p. per rupee of the sale proceeds. So the charge can be levied only when the sale of the property actually takes place. "
( 4 ) ONCE the recovery certificate is received by the Collector, he car take proceedings for recovery by various processes as provided under Section 279 of U. P. Zamindari Abolition and land Reforms Act. 1950 which reads as under :
"279. Procedure for recovery of an arrear of land revenue,-- (1) An arrear of land revenue may be recovered by any one or more of the following processes : (a) by serving a writ of demand or a citation to appear on any defaulter. (b) by arrest and detention of his person, tc) by attachment and sale of his movable property including produce. (d) by attachment of the holding in respect of which the arrears is due, (e) (by lease or sale) of the holding in respect of which the arrear is due", (f) by attachment and sale of other immovable property of the defaulter, (and) (g) by appointing a receiver of any property, movable or immovable of the defaulter. (2) The costs of any of the processes mentioned in sub-section (I) shall be added to and be recoverable in the same manner as the arrears of land revenue,"
( 5 ) SUB-SECTION (2) of Section 279 provides that the cost of any of the processes mentioned in sub-section (1) shall be added to be recoverable in the same manner as the arrears of land revenue. Sub-section (2) was added by U. P. Act No. 12 of 1965 with retrospective effect. It is clear from this provision that the costs of process can be recovered even if the sale had not taken place if the realisation of the amount has been made as arrears of land revenue by any of the modes prescribed under Section 279 of the Act.
( 6 ) THE next question is as to what should be the amount of collection charges. The matter was considered by a Division Bench consisting of Honble Mr. Justice R. R. K. Trivedl and Honble mr. Justice R. K. Singh in M/s. Maha Laxmi Sugar Mills Company Ltd. v. State of U. P. and others. Civil Misc. Writ
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