Recovery proceedings initiated after a significant delay may be considered time-barred and cannot be sustained.

The petitioner before this Court has challenged the recovery proceedings initiated against him by respondent No.1 U.P. Financial Corporation (hereinafter referred to as 'Corporation'). The main contention of the petitioner is that the recovery is barred by time.

2. The petitioner not only denies that he has any dues against the Corporation, but also challenges the recovery proceedings on the grounds that the same is time barred. Admittedly the petitioner had taken a loan from the Corporation in the year 1981. The total loan sanctioned a term loan of Rs. 24,000/- for establishing of a Confectionery Unit, however, the total loan which was given to him was only Rs. 20,000/-.

3. According to the petitioner he regularly paid installments to the Corporation. He received a letter from the Corporation on 02.08.2009 in which the Corporation demanded a sum of Rs. 13,850/- as principal amount and Rs. 51,151/- as interest thereon i.e. total sum of Rs. 71,001/- as outstanding against the petitioner.

4. This said amount was not paid by the petitioner and subsequently, a recovery proceedings have been initiated against the petitioner under the U.P. Public Money (Recovery of Dues) Act, 1972 (in short 'Public Money Act'). This recovery is being recovered as an arrear of land revenue.

5. The respondents admit that when all efforts to recover the money from the petitioner fails, they finally initiated recovery proceedings under the Public Money Act vide citation dated 18.11.2012. However, the respondents contend that the recovery is not time barred, as they have been writing letters to the petitioner to repay the said loan i.e. letters dated 11.08.1982, 10.12.1982, 05.01.1983, 06.01.1983, 10.06.1983, 17.09.1983, 27.11.1983, 14.12.1983, 09.02.1984, 21.02.1984, 09.03.1984, 15.06.1984, 01.08.1984, 07.09.1984, 27.08.1984, 17.11.1984, 16.10.1985 and 18.02.1986. Thereafter there is a gap of more than 17 years and the next letter was issued by them admittedly on 11.11.2003. There are other two letters dated 24.02.2004 and 05.10.2005 as well. Admittedly recovery of certain dues provided under Section 3 of the Public Money Act, which reads as under:-

' 3. Recovery of certain dues as arrears of land revenue ' (1) Where any person is party'

(a) to any agreement relating to a loan, advance or grant given to him or relating to credit in respect of, or relating to hire-purchase of goods, sold to him by the State Government or the Corporation, by way of financial assistance; or

(b) to any agreement relating to a loan, advance or grant given to him or relating to credit in respect of, or relating to hire-purchase of goods sold to him, by a banking company or a Government Company, as the case may, be, under a State sponsored scheme; or

(c) to any agreement relating to a guarantee given by the State Government or the Corporation in respect of a loan raised by an industrial concern; or

(d) to any agreement providing that any money payable thereunder to the State Government or the Corporation 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;

then, in the case of the State Government, such officer as may be authorized 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 or such officer of the Corporation or Government Company as may be authorized in that behalf by the Managing Director or the Chairman thereof, and in the case of a banking company, the local agent, thereof, by whatever name called, may send a certif