Collector has issued notice and demanding fees for recovery citation. I borrowed money from XX and failed to repay within the prescribed time. That loan has been mutually settled by us. I paid the entire outstanding and the bank has issued no objection certificate. Now the collector is mounting pressure on me to pay thirteen lakh as fees for the recovery citation. No conversation with the collector and other officer bearer. Never went to the office and receive any document from the collector’s office. I am afraid that the collector can attach my property. Please help.
Asked from: Uttar Pradesh
Based on the facts of your case, it appears that the loan account was closed following an amicable settlement between the borrower and the creditor. When the bank issued the recovery certificate, it might have requested the collector to recover the dues in the form of land revenue, which led to the issuance of the recovery citation by the collector.
Since the matter has been amicably settled, the loan account has been closed, and the bank has issued a no objection certificate, it seems that the collector has not taken any steps to recover the loan. Given that no action has been taken by the collector or his office, the demand for fees for the recovery citation is illegal.
In the case of Maharajwa and others vs. State of Uttar Pradesh (2013), the Allahabad High Court held that if the authority has not been able to recover the amount of arrears through the coercive process undertaken by them, there is no justification for releasing the cost of recovery from the defaulter.
In the petition, you should seek a direction from the court to stop the proceedings related to the recovery citation and to preclude the collector from demanding fees for the recovery citation. You should file a writ petition in the high court for the issuance of a mandamus on these grounds:
- Matter has been settled between the borrower (petitioner) and creditor
- That settlement was amicable and without interference of Collector
- Collector did nothing in order to recover the loan from the petitioner
- In absence of any step taken by Collector, demanding fees for recovery citation is illegal
The court shall issue the writ of mandamus, thereby commanding the collector to drop the proceedings and not to recover any amount from you.
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