Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
Supply of goods to the government under the Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972 is generally considered a debt or public money due to the government or its agencies, and thus falls within the scope of the Act for recovery purposes ["Prakash Pottery Industries Chunar (M/s.) v. District Magistrate Mirzapur - Allahabad"], ["Rana Gurjeet Singh VS Punjab Energy Development Agency - Punjab and Haryana"].
The Act primarily deals with the recovery of dues arising from loans, advances, grants, or financial assistance provided by the government or government-controlled corporations, including dues under hire-purchase agreements or schemes sponsored by the state ["Prakash Pottery Industries Chunar (M/s.) v. District Magistrate Mirzapur - Allahabad"], ["Rana Gurjeet Singh VS Punjab Energy Development Agency - Punjab and Haryana"], ["STANDARD NUT MANUFACTURERS VS COLLECTOR/DISTRICT MAGISTRATE, BULANDSHAHR - Allahabad"].
Dues for supply of goods sold to the government or its corporations are typically recoverable under the Act if the amount remains unpaid, as such dues are considered public money payable to the government or its agencies ["Prakash Pottery Industries Chunar (M/s.) v. District Magistrate Mirzapur - Allahabad"], ["STANDARD NUT MANUFACTURERS VS COLLECTOR/DISTRICT MAGISTRATE, BULANDSHAHR - Allahabad"].
However, the applicability depends on whether the transaction qualifies as a state-sponsored scheme or a direct sale of goods, and whether the dues are related to financial assistance or loans provided under such schemes. If the supply is purely commercial and not linked to a government scheme, recovery might fall outside the scope of the Act ["Prakash Pottery Industries Chunar (M/s.) v. District Magistrate Mirzapur - Allahabad"], ["STANDARD NUT MANUFACTURERS VS COLLECTOR/DISTRICT MAGISTRATE, BULANDSHAHR - Allahabad"], ["Manmohan Mishra VS State of U. P. - Allahabad"].
Courts have clarified that recovery of dues for unpaid goods supplied to government entities can be initiated under the Act, provided the dues are recognized as government liabilities, and the proceedings are initiated according to the provisions of the Act ["Prakash Pottery Industries Chunar (M/s.) v. District Magistrate Mirzapur - Allahabad"], ["SURESH CHANDRA VARSHNEY VS RAJKIYA AUDYOGIC EVAM KRISHI PRADARSHANI - Allahabad"].
Analysis and Conclusion:Supply of goods to the government or its controlled corporations generally falls under the Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972, if the unpaid amount is recognized as a debt due to the government or its agencies. The Act facilitates speedy recovery of such dues as arrears of land revenue or public money, especially when the dues arise from transactions linked to government schemes or financial assistance. Nonetheless, the specific circumstances and nature of the transaction (sale vs. financial assistance) influence whether recovery falls strictly under this Act.
In the world of government contracts and business dealings, suppliers often wonder about recovery mechanisms when payments are delayed or disputed. A common question arises: whether supply of goods to government falls under the Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972. This Act provides a swift recovery process for certain public dues, but its scope is narrowly defined. This blog post breaks down the legal position, drawing from key court judgments and statutory interpretations to help businesses understand when it applies—or doesn't.
Note: This is general information based on judicial precedents and should not be considered specific legal advice. Consult a qualified lawyer for your situation.
The supply of goods to the government under the Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972, does not inherently fall within the scope of the Act unless the supply is made as part of a financial assistance scheme, loan, advance, grant, or under a specific agreement relating to hire-purchase of goods sold by the government or a corporation under a State-sponsored scheme. A. P. T. Ispat Pvt. Ltd. VS U. P. Small Industrial Corporation Ltd. - 2010 3 Supreme 520Pooja S. Chabria D/O. Late Shamlal Dayaram VS Karnataka State Finance Corporation By The Special Tahasildar Bengaluru Urban Zone - 2024 0 Supreme(Kar) 559
The Act is designed for speedy recovery of specific dues, bypassing regular civil suits, but courts have consistently limited it to transactions tied to government-backed financial support. Ordinary sales do not qualify. REWA GASES (P. ) LTD. VS STATE OF UTTAR PRADESH - 1998 0 Supreme(All) 263
Enacted to facilitate quick recovery of public moneys, the Act targets dues from financial assistance schemes. Section 3 allows recovery as arrears of land revenue, but only for defined categories. Courts emphasize: The Act primarily applies to debts arising from financial assistance, loans, grants, or agreements relating to hire-purchase of goods sold by government or specified entities. A. P. T. Ispat Pvt. Ltd. VS U. P. Small Industrial Corporation Ltd. - 2010 3 Supreme 520Pooja S. Chabria D/O. Late Shamlal Dayaram VS Karnataka State Finance Corporation By The Special Tahasildar Bengaluru Urban Zone - 2024 0 Supreme(Kar) 559
The definition under Section 2(g) is crucial: 'State-sponsored scheme' means a scheme sponsored by... Sushil Kumar VS State Bank of India In one case, a loan was quashed from recovery under the Act because it did not qualify as a state-sponsored scheme. The court held: the loan was not sanctioned under a 'State sponsored scheme' as defined in the Act, and therefore, quashes the recovery citation. Sushil Kumar VS State Bank of IndiaSushil Kumar VS State Bank of India - 2005 Supreme(UK) 521
This interpretation ensures the Act isn't misused for routine debts.
If you're supplying goods to a government department or corporation in the regular course of business—like a standard purchase order—this does not trigger the Act. In U.P. Carbide and Chemicals Limited, the court ruled: recovery proceedings were inapplicable as they were simple mercantile transactions, and the dues did not arise from a financial assistance scheme. REWA GASES (P. ) LTD. VS STATE OF UTTAR PRADESH - 1998 0 Supreme(All) 263
Similarly, outstanding amounts from bank loans not tied to hire-purchase of government-sold goods cannot invoke Section 3(1). The court clarified: Any other financial assistance may be under the State sponsored scheme, which does not relate to purchase of goods sold by the banking company or Government company shall not be recoverable under the provisions of U.P. Public Moneys (Recovery of Dues). Trilok Singh VS District Magistrate Bageshwar - 2015 Supreme(UK) 84
Even if goods are misappropriated through theft, dacoity, or employee misconduct, the Act doesn't apply unless connected to a financial scheme. The Act is explicitly not intended to recover the monetary value of goods that are taken away in criminal actions such as theft, dacoity, or dishonest appropriation unless the supply was part of a scheme of financial assistance. A. P. T. Ispat Pvt. Ltd. VS U. P. Small Industrial Corporation Ltd. - 2010 3 Supreme 520
In a case of quantified loss from employee misconduct, recovery as arrears of land revenue was held invalid: A Corporation is not the State Government... Respondent No. 1 not empowered to recover as arrears of land revenue, the dues quantified as a loss sustained from a misconduct of an employee. PRAMOD KUMAR PANDEY VS U. P. STATE FOOD & ESSENTIAL COMMODITIES CORP. - 2014 Supreme(All) 1110
Recovery is permissible only if:- There's an agreement for loan, advance, or grant; or- It involves hire-purchase of goods sold by the government or corporation under a State-sponsored scheme. A. P. T. Ispat Pvt. Ltd. VS U. P. Small Industrial Corporation Ltd. - 2010 3 Supreme 520Pooja S. Chabria D/O. Late Shamlal Dayaram VS Karnataka State Finance Corporation By The Special Tahasildar Bengaluru Urban Zone - 2024 0 Supreme(Kar) 559
For instance, in a hire-purchase dispute for machinery: the amount due under the hire purchase agreement could be recovered under the U. P. Public Moneys (Recovery of Dues) Act, 1972. STANDARD NUT MANUFACTURES VS COLLECTOR DISTRICT MAGISTRATE BULANDSHAR - 2010 Supreme(All) 302
Courts reinforce: the provisions of the Act 'can only be utilized for recovery of sums due in special circumstances as enumerated in Section 3 (1) of the Act.' PRAMOD KUMAR PANDEY VS U. P. STATE FOOD & ESSENTIAL COMMODITIES CORP. - 2014 Supreme(All) 1110
In lease disputes or urban development, unrelated recoveries don't invoke it. Shipra Hotels Limited VS Ghaziabad Development Authority - 2019 Supreme(All) 2275
Parties entering into transactions with the government or its corporations should clarify whether the transaction is part of a State-sponsored scheme. ANUPAM SARI CENTRE VS COLLECTOR, PADRAUNA - 1998 0 Supreme(All) 1216
In summary, supplying goods to the Uttar Pradesh government typically does not fall under the Public Moneys (Recovery of Dues) Act, 1972, unless explicitly linked to financial assistance, loans, grants, or hire-purchase under a state-sponsored scheme. Courts protect against misuse, prioritizing ordinary civil processes for mercantile deals. REWA GASES (P. ) LTD. VS STATE OF UTTAR PRADESH - 1998 0 Supreme(All) 263
Key Takeaways:- No Automatic Coverage: Stick to scheme-specific transactions.- Court Consensus: Limited to enumerated categories. A. P. T. Ispat Pvt. Ltd. VS U. P. Small Industrial Corporation Ltd. - 2010 3 Supreme 520- Business Tip: Review Section 2(g) definitions early.
Stay informed on evolving jurisprudence, as interpretations like those in Iqbal Naseer Usmani reinforce these boundaries. Trilok Singh VS District Magistrate Bageshwar - 2015 Supreme(UK) 84
For tailored advice, contact a legal expert specializing in UP recovery laws.
#UPRecoveryAct, #PublicMoneysAct, #LegalInsights
Public Moneys (Recovery of Dues) Act. 1965 violates Art.14 of the Constitution. The State Legislature enacted the Uttar Pradesh Recovery of Taxes and Other Public Moneys (Amendment and Validation) Act. 1970. ... The Public Moneys (Recovery of Dues) Act, 1965 as its long title shows, provides for the speedy recovery of certain classes of #HL_STA....
Central Bank of India and others, reported as 2006 (2) SCC 241, wherein challenge had been raised to the issuance of recovery certificate under Section 3 of the Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972. ... by it under Section 3 of the Punjab Public Moneys ' (Recovery of Dues) Act, 1983? ... Public Moneys (Recovery of #HL_START....
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Public Moneys (Recovery of Dues) Act, 1972. ... Public Moneys (Recovery of Dues) Act, 1972 cannot be invoked against him. ... 5. Hence, the writ petition is allowed quashing Annexure 1 Recovery Citation. ... Public Moneys (Recovery of Dues) Act, 1972. defines 'state sponsored scheme' as follows : ... "2(g) "State-sponsored scheme" means a scheme sponsored by....
Now, question arises - As to whether outstanding amount can be recovered by invoking the provisions of the U.P. Public Moneys (Recovery of Dues) Act, 1972? ... Any other financial assistance may be under the State sponsored scheme, which does not relate to purchase of goods sold by the banking company or Government company shall not be recoverable under the provisions of U.P. Public Moneys (Recovery of Du....
Public Moneys (Recovery of Dues) Act, 1972. Section 2 of the Act provides as follows:- ... “2. Definitions. ... Public Moneys (Recovery of Dues) Act, 1972 is applicable to the dues recoverable under the hire purchase agreement. The petitioners filed Civil Appeal No. 7341-7343 of 1997 on the ground that the writ petition was decided in the absence of appellant and their advocate. ... —In this Act, unless the context otherwise requir....
P, Public Moneys (Recovery of Dues)Act, 1972. Section 2 of the Act provides as follows:- ... "2. Definitions. ... Public Moneys (Recovery of Dues)Act, 1972 is applicable to the dues recoverable under the hire purchase agreement. The petitioners filed Civil Appeal No. 7341-7343 of 1997 on the ground that the writ petition was decided in the absence of appellant and their advocate. ... -\n this Act, unless the context otherwise requir....
The Uttar Pradesh Public Moneys (Recovery of Dues) (Amendment) Act, 1975 (Act No. 17 of 1975) provided for abatement of suits, applications and arbitration proceedings of the nature referred to in sub-section (5) of Section 3. Section 5 provides. "5. ... It is thus apparent that sub-sec. (1) [of Section 3 not being applicable sub-section (5) will equally not apply, and so Section 5 of the Uttar Pradesh Public Moneys#HL_EN....
Public Moneys (Recovery of Dues) Act, 1965, this Court in Director of Industries, U.P. v. ... Deep Chand (supra) was a case where there was a challenge to the constitutionality of Section 3 of the U.P Public Moneys (Recovery of Dues) Act, 1965. ... The fresh Recovery Certificate was issued on 10.08.2005 u/s 3 of Haryana Public Moneys (Recovery of Dues) Act, 1979....
Public Moneys (Recovery of Dues) Act, 1972 specifically held that the provisions of the Act “can only be utilized for recovery of sums due in special circumstances as enumerated in Section 3 (1) of the Act.” Para 6 Page 242. ... 20. ... Public Moneys (Recovery of Dues) Act, 1972, the Act, an amount of Rs. 43,54,557/- be recovered as arrears of land revenue. The petitioner challenged the order in a writ petition before this Court. ....
Many features of the Uttar Pradesh Agricultural Credit Act, 1973 show that it is a beneficial legislation created for agriculturists. It is settled rule of statutory construction that the special enactment shall prevail over the general statute. To the contrary, the Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972 is a prior legislation which is a general nature. Act, 1972 does not recognize the distinction between agriculturists and other borrowers and creates no special provisions for the agricultural class and offers no protection to the agriculturists. #HL_START....
the Housing and Urban Development Corporation, or a banking company as defined in the Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972 or any other financial institution approved by general or special order in this behalf by the State Government. 2(3) Notwithstanding, anything contained in Sub-section (2), the Authority or the local Authority concerned may create a mortgage or charge over such land (including any building thereon) in favour of the Life Insurance Corporation of India.
The Hon’ble Apex Court referred to Section 34 of the 1993 Act. In the said judgment, the Court was dealing with the following facts: A Certificate was issued under the Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972.
The first respondent (Central Bank of India) instead of executing the decree obtained against Iqbal Naseer Usmani, approached the Tehsildar, Gonda, for issuance of a certificate of recovery under the provisions of the Act of 1972. In the case of Iqbal Naseer Usmani (supra), the respondent/Central Bank of India instituted a regular civil suit for recovery of the unpaid amount of loan together with accumulated interest thereon and a decree was made on 28th November, 1995, which was subjected to an appeal in Forma Pauperis with an application for being declared as a pauper by Iqbal Naseer Usman....
Section 4(2)(b) of the Uttar Pradesh Public Moneys (Recovery of Dues) 5. Sections 3 and 4 of the Uttar Pradesh Public Moneys (Recovery of Dues) The conclusion drawn by this Court is summed up in the following passage: 8. In our view, the above-set-out provisions of the U.P. Act, 1972 was in the process interpreted to be giving protection against recovery proceedings not only to the borrower of the loan but to his guarantor as well. Act, 1972 may, at the outset, be extracted in extenso: 2. In Pawan Kumar Jain v. Pradeshiya Industrial and Investment Corporat....
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