M/s. Mittal Synthetic and Ginning Industries and another Vs Haryana Financial Corporation and others

Sanjay Kishan Kaul, C.J.@mdashThe writ petition has been filed by the petitioners seeking restraint against the respondents from using coercive methods of arrest for recovery of old loans. In terms of the interim order dated 17.09.2008, the arrest of the petitioners was stayed while other mode of recovery were permitted to be adopted. Learned counsel for respondents No. 1 and 2 further states that they do not seek to press the recovery certificates under the old Act and seek to withdraw the same and they will avail the remedy in accordance with law u/s 32 of the State Financial Corporation Act, 1951.

2. In our view, the matter is also otherwise covered by the judgment of the Hon''ble Supreme Court of India in case Jolly George Varghese and Another Vs. The Bank of Cochin, and State of Punjab and Others Vs. S. Dharam Singh (Dead) by Successor Desa Singh and Another, where it is laid down that the loan cannot be recovered by means of arrest and detention. Petition is thus allowed of in the aforesaid terms leaving the parties to bear their own costs.