An amount advanced by a bank to a borrower can be recovered as arrears of land revenue if the agreement between the bank and the borrower contains a condition to that effect.

R.R.K. Trivedi, J.

1. Sri Hari Ashok Kumar has put in appearance for respondent No. 3 Branch Manager of Bank of Baroda, Farrukhabad. Learned Standing Counsel has accepted notice for respondents No. 1 and 2. In my opinion, this petition can be disposed of finally at this stage without calling for a counter affidavit.

2. In this petition recovery of an amount of Rs. 24,58,162/- as land revenue arrears has been challenged by the petitioners. Learned counsel for the petitioners has submitted that respondent No. 3 gave a cash credit working facility to the extent of Rs. 10,00,000/- on 16th March, 1988 and also gave a term loan of Rs 7.5 Lacs in the year 1988, for the building and machinery i.e. Ice plant and Milk Chilling Plant. The said loan was repayable with interest upto December, 1993. It has been further submitted that due to losses suffered by the petitioners the amount could not be paid in time. Respondent No. 3, however, has issued recovery certificate under section 11-A of the Agriculture Credit Act, 1973 for realisation of the aforesaid amount as land revenue arrears on which basis citation has been served on petitioners to pay the amount Contention of learned counsel for the petitioners is that transaction being a commercial one it could not be realised as agricultural loan. It has been further submitted that though the citation was served fixing date 19th February, 1993, petitioners were arrested on 18th February, 1993. Learned counsel for the petitioners has submitted that this arrest was illegal. I have heard learned counsel for the parties and in my opinion contentions advanced on behalf of the petitioner have no merits. It is not denied that amount has been advanced to the petitioners by Public Undertaking i.e. the Bank of Baroda which is a Nationalised Bank and also a Corporation registered under the Companies Act. Thus, the amount due from the petitioners could be recovered under the provisions of U.P. Public Moneys (Recovery of Dues) Act, 1972 i.e. U.P. Act No. 23 of 1972 as amended by U.P. Act No. 17 of 1975. Section 3 of the aforesaid Act provides interalla that where any person is party to any agreement providing that any money payable thereunder to the State Government (or the Corporation) shall be recoverable as arrears of land revenue. Section 3(1) Clause (d) Is being reproduced below :-

3". Recovery of certain does as arrears of land revenue-(1) Where any person is party- (a).................... ; or (b)..................; or (c) .................. ; or (d) to any agreement providing that any money payable thereunder to the State Government (or the Corporation) (Inserted by U.P. Act 17 of 1973 w.e.f. March 31, 1975) shall, be recoverable as arrears of land revenue ; and such person- (i) makes any default in repayment of the loan or advance or any Instalment thereof ; or (ii) having become liable under the conditions of the grant to refund the grant or any portion thereof, makes any default in the refund of such grant or portion or any instalment thereof ; or (iii) otherwise fails to comply with the terms of the agreement, Inserted by U.P. Act 17 of 1975 w.e.f. March 31, 1975.) then, in the case of the State Government, such officer as may be authorised in that behalf by the State Government by notification in the official Gazette, and in the case of the Corporation or a Government Company the Managing Director (or where there is no Managing Director then the Chairman of the Corporation, by whatever name called) (Inserted by U.P. Act 17 of 1975 w.e.f. March 31, 1975) thereof, and in the case of a banking company, the local agent thereof, by whatever name called, may send a certificate to the Collector, mentioning the sum due from such person and requesting that such sum together with costs of the proceedings be recovered as if it were an arrear of land revenue.

(2) The Collector on receiving the certificate shall proceed to recover the amount stated therein as an arrear of land revenue.

(3) No salt for