The Recovery Authority's jurisdiction under the Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam, 1987, is not limited to the debtor's property, and it can proceed against the properties of the partners and the guarantor as well.

S. P. SRIVASTAVA, J.

( 1 ) HEARD the learned counsel for the petitioner as well as the learned counsel representing the contesting respondents.

( 2 ) THE petitioner-Bank had issued a recovery-certificate contemplated under Section 3 of the Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam, 1987, against (1) M/s. Kalptaru Vanika, a Partnership Firm as well as (2) Mrs. Praveen Malik, Partner, (3) Mrs. Reeni Malik, (4) Mrs. Sarita Tondon, and (4) Mr. Ramakant Ram, who were its partners, for the recovery of an amount of Rs. 22,80,797/- along with an interest calculated at the rate of 18. 25 per cent. In the aforesaid recovery-certificate it had also been indicated that Mr. Subhash Malik, the present respondent No. 6, was the guarantor for securing the payment due to the Bank. The aforesaid recovery certificate was issued on 8-10-1996.

( 3 ) PURSUANT to the recovery-certificate indicated hereinabove, proceedings for the recovery of the amount mentioned therein were initiated under the provisions of the Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki. Vasuli) Adhiniyam, 1987. The Scheme underlying the provision of the aforesaid Act clearly indicates the recovery-certificate has to be issued by the 'creditor authority' as contemplated under Section 3 (1) (D) (c) of the Act. This recovery certificate has to be executed for the amount determined to be due which has to be recovered by the 'recovery Authority' contemplated under Section 3 (2) of the Act.

( 4 ) UNDER the impugned order passed by the Board of Revenue, directions have been issued requiring the Recovery Authority to ensure that the mortgaged properties are proceeded with first for the recovery of the amount in dispute and in case the amount recovered falls deficient in that even the proceedings for recovery of the amount from the partnership firm's other properties situate in other district be initiated. The Board of Revenue has further provided that the debtors may raise their objections in regard to damages, Damduppat and penal rate of interest etc. which objections shall be disposed of in accordance with law.

( 5 ) FEELING aggrieved by the aforesaid directions the Banking Company which had advanced the amount of loan to the debtor-respondents and at whose instance the 'creditor authority' had issued the recovery certificate has now approached this Court seeking redress praying for the quashing of the order passed by the Board of Revenue.

( 6 ) LEARNED counsel for the petitioner has strenuously urged that the Board of Revenue has erred in issuing the directions, referred to herein above, which were wholly unwarranted. What has been contended is that the mortgaged property is not sufficient to satisfy the claim of the petitioner and since a certificate had been issued in this connection by the Collector before, there was no justification for issuing the direction for first exhausting the mortgaged property for raising the amount to satisfy the claim and the Recovery Authority could straightway proceed to recover the amount in dispute from the other properties belonging to the debtors.

( 7 ) THE evidence and materials which have been brought on record do not indicate that the Recovery Authority had in fact taken effective steps to get sold the immoveable properties mortgaged with the Bank securing the payment of the amount found due. There is nothing on the record which could lead to an inference that the amount fetched from the sale of the immoveable properties which stood mortgaged with the petitioner was deficient in any manner. In fact, this stage has not reached as yet. In the aforesaid connection it may be noticed that as provided under Section 4 (2) (b) of the Adhiniyam of 1987 aforesaid, in every case of mortgage, charge, pledge or other encumbrance on immovable property, such property or as the case may be the interest of the defaulter therein has to be sold first in the proceedings for recovery of the sum due from that person as arrears of land revenue and

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