Recovery of Public Debts

In view of the above, the law can be summarised to the effect that the recovery of the public dues must be made strictly in accrodance with the procedure prescrived by law. The liability of a surety is co-extensive with that of principal debtor. In case there are more than one surety the liability is to be divided equally among the sureties for unpaid amount of loan. Once the sale has been confirmed it cannot be set aside unless a fundamental procedural error has occured or sale certificate had been obtained by misrepresentation or fraud. 

 

The authority is duty bound to decide whether debt can be satisfied by sale of part of the property. Valuation is different from minimum price and must be done fairly.

 

2012 (4) ALJ 653 - Ram Kishun v. State of UP

Dying in harness - good case

2006 1 AWC 273

2012 7 SCC 248

Recovery of Public dues - principle of proportionality and best price

The financial institutions are not act as 'property dealers' and secured assets are not to be disposed of in an arbitrary manner. It has to be sold at best price and only that much of the property which is sufficient to meet the dues must be sold.

 

2012 (4) ALJ 653 - Ram Kishun v. State of UP

Suppression of material facts

Oswal Fats & Oils, 28 (2010) LCD. 640

A person who does not disclose all material facts has no right to be heard on merits of his grievance.

Substantial question of law

Substantial Question of Law will also arise where the legal position is clear but the court below has not decided the matter either ignoring or acting contrary to such legal principles.

Narendra Gopal Vidyarthi v. Rajat Vidyarthi, 28 (2010) LCD 1

Banda Development Authority

Banda Development Authority v. Moti Lal Agarwal, (2011) 5 SCC 394.

 

Limitation to be made and decided first by the court itself.

 

Manner of taking over of possession under the LA Act, 1894 explained.

Power to create districts

1999 (17)(1) LCD 323