SOBRAN SINGH versus STATE OF U.P. & ORS.

SOBRAN SINGH versus STATE OF U.P. & ORS.

Section 4(2) of the UP Public Moneys (Recovery of Dues) Act, 1972 protects only principal borrowers who have mortgaged their property; it does not extend to guarantors. Guarantors can be proceeded against for recovery even if the mortgaged property of the principal debtor has not been sold.

Parties
Appellant: Sobran Singh; Respondent: State of U.P. & Ors.
Jurisdiction
India
Judgment Date
23 September 2014
Procedural Posture
Civil Appeal / Final Judgment
Outcome
appeals dismissed
Legal Topics
Liability of Guarantor, Recovery as Arrears of Land Revenue, Interpretation of UP Public Moneys (recovery of Dues) Act, 1972
Recovery of Debts Guarantee Law Liability of Guarantor Recovery as Arrears of Land Revenue Interpretation of UP Public Moneys (recovery of Dues) Act, 1972

Case Brief

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Parties

Sobran Singh

Appellant

State of U.P. & Ors.

Respondent

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether Section 4(2) of the UP Public Moneys (Recovery of Dues) Act, 1972, bars recovery proceedings against a guarantor until the mortgaged property of the principal borrower is sold
  2. 2 Whether guarantors are entitled to the same protection as principal borrowers under Section 4(2)

Ratio Decidendi

Section 4(2) of the UP Public Moneys (Recovery of Dues) Act, 1972 protects only principal borrowers who have mortgaged their property; it does not extend to guarantors. Guarantors can be proceeded against for recovery even if the mortgaged property of the principal debtor has not been sold.

Court Disposition

appeals dismissed

Orders

  • Appeals dismissed without any order as to costs.