# Manmohan Mishra v. State of U.P. & Ors

- **Citation:** (2022) 1 ILRA 768
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2021-09-29
- **Case number:** Writ C No. 16344 of 2021
- **Bench:** Ajay Bhanot
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/manmohan-mishra-v-state-of-u-p-ors-47502
- **Pages:** 14

## Headnote

A. Recovery law - UP Public Moneys
(Recovery of Dues) Act, 1972 - UP
Agricultural Credit Act, 1973 - Agricultural
loan
granted
-
Impugned
recovery
proceeding was initiated under the Act of
1972 - Validity challenged - Application of
the Act of 1972 considered - Held, UP
Agricultural
Credit
Act,
1973
is
an
enactment created for a special purpose
and a specific class of citizens namely
agriculturists, who have taken agricultural
loans - It's provisions confer special
benefits
and
provide
for
additional
protection to agriculturists who default in
payment of loans - Recovery proceeding
initiated under the Act of 1972 was held
beyond jurisdiction. (Para 29 and 33)
B. Interpretation of Statute - General law
and Special law - Overriding effect -
Generalia specialibus non derogant -
Held, canon of statutory interpretation
that special law shall prevail over the
general law flowing from the maxim
'Generalia specialibus non derogant', have
settled the proposition with good and
consistent authorities. (Para 31)
Writ petition allowed. (E-1)
List of Cases cited :-

## Text

_Characters 0–39,953 of 42,676. This is a partial read: ask again with offset=39953 for what follows._

768 INDIAN LAW REPORTS ALLAHABAD SERIES
Therefore, the parties could not have been
relegated to avail the remedy provided
under Section 25 (1) of the Act. In fact, the
Deputy Registrar in the order impugned
was not concerned only with elections. The
dispute was with regard to the amendment
allegedly made in the by-laws and also with
regard
to
membership.
The
Deputy
Registrar found that the amendments were
carried out in the absence of notice to
Original Life Members. The General Body
Members who were inducted by the
petitioners were only on the basis of an
amendment which amendment in the bylaws it self could not have been made in the
absence of life members counter signing
the Resolution dated 11.10.1980, the
provision of Section 4B came on the statute
book in October, 2013. The question of
membership can now be seen by the
Deputy Registrar after the induction of
Section 4B as has been held by the
Division Bench of this Court in the case of
T P Singh v Deputy Registrar, 2019 (132)
ALR 480.

115. In Allahabad High School
Society Vs. State of U.P. 2011 (3) ESC
2034, the Supreme Court has observed in
paragraph 20 that all things incidental to
decide membership could be looked into.

116. The petitioners have failed to
make out any case to show interference in
the orders impugned dated 28.12.2016, the
order dated 09.02.2017. The writ petition is
dismissed.

117. The respondents nos.4 to 8 have
been elected in 2017. The office bearers'
tenure is two years which got over and
elections were held again in 2019. The
elections were due in March 2021, which
may or may not have been held, this court
cannot say as there are no pleadings on
record. The subsequent elections of 2017
and 2019
or 2021
have
not
been
challenged.

118. Since the Society has admittedly
only five surviving members, this Court
deems it appropriate to direct the Deputy
Registrar, Firms, Chits and Societies,
Faizabad Region, Ayodhya to consult the
District Magistrate Ayodhya and the
Commissioner, Ayodhya Division, and the
five surviving members within four weeks
from the date a copy of this order is
produced before him and induct at least 30
life members from amongst eminent
educationists and Social workers of the
Ayodhya
Division.
The
Divisional
Commissioner, Ayodhya, and the District
Magistrate Ayodhya, shall be Patron
Members of the Society and the Deputy
Registrar
shall
ensure
elections
of
Committee of Management of the Society
as and when it falls due. If the respondent
nos.4 to 8 have inducted life members or
ordinary members in the General Body of
the Society, in the meantime the Deputy
Registrar shall call for the proceedings and
verify the membership in accordance with
Section 4B of the Act and proceed
accordingly.
----------
(2022)01ILR A768
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 29.09.2021

BEFORE

THE HON'BLE AJAY BHANOT, J.

Writ C No. 16344 of 2021

Manmohan Mishra ...Petitioner
Versus
State of U.P. & Ors. ...Respondents

Counsel for the Petitioner:
1 All. Manmohan Mishra Vs. State of U.P. & Ors.
769
Sri Jagnath Singh, Sri Mahendra Pratap
Singh

Counsel for the Respondents:
C.S.C., Sri Brahmanand Singh

A. Recovery law - UP Public Moneys
(Recovery of Dues) Act, 1972 - UP
Agricultural Credit Act, 1973 - Agricultural
loan
granted
-
Impugned
recovery
proceeding was initiated under the Act of
1972 - Validity challenged - Application of
the Act of 1972 considered - Held, UP
Agricultural
Credit
Act,
1973
is
an
enactment created for a special purpose
and a specific class of citizens namely
agriculturists, who have taken agricultural
loans - It's provisions confer special
benefits
and
provide
for
additional
protection to agriculturists who default in
payment of loans - Recovery proceeding
initiated under the Act of 1972 was held
beyond jurisdiction. (Para 29 and 33)
B. Interpretation of Statute - General law
and Special law - Overriding effect -
Generalia specialibus non derogant -
Held, canon of statutory interpretation
that special law shall prevail over the
general law flowing from the maxim
'Generalia specialibus non derogant', have
settled the proposition with good and
consistent authorities. (Para 31)
Writ petition allowed. (E-1)
List of Cases cited :-
1. Suresh Nanda Vs C.B.I.; 2008 (3) SCC 674
2. Rajan Sandhi P. Vs U.O.I. & anr.; 2010 (10)
SCC 338
3. Commercial Tax Officer, Rajasthan Vs M/s.
Binani Cements Ltd. & anr.; 2014 (8) SCC 319
4. Sharat Babu Digumarti Vs Govt. of NCT of
Delhi; 2017 (1) SCC (Cri) 628
5. Raheja Universal Ltd. Vs N.R.C. Ltd. & ors.;
2012 (4) SCC 148

(Delivered by Hon'ble Ajay Bhanot, J.)

1. Heard Sri Jagannath Singh, learned
counsel for the petitioner, learned Standing
Counsel for the respondents No.1 to 4 and
Sri Brahmanand Singh, learned counsel for
the respondent No.5/Bank.

2. The petitioner has assailed the
recovery
certificate
dated
29.06.2019
issued by the respondent No.5-Bank under
the
Uttar
Pradesh
Public
Moneys
(Recovery of Dues) Act, 1972 and
attachment notice dated 14.01.2020 issued
by the respondent No.3 and consequential
proceedings taken under the Uttar Pradesh
Public Moneys (Recovery of Dues) Act,
1972.

3. The sole contention of Sri
Jagannath Singh, learned counsel for the
petitioner is that the recovery proceedings
taken out under the Uttar Pradesh Public
Moneys (Recovery of Dues) Act, 1972 are
beyond jurisdiction. The applicant had
taken an agricultural loan. The loan comes
within
the
ambit
of
Uttar
Pradesh
Agricultural Credit Act, 1973 (hereinafter
referred to as 'Agricultural Credit Act). The
scheme of recovery under the Uttar Pradesh
Agricultural Credit Act, 1973 is distinct
from the mode of recovery prescribed
under the Uttar Pradesh Public Moneys
(Recovery of Dues) Act, 1972.

4. Sri Brahmanand Singh, learned
counsel for the respondent No.5/Bank does
not dispute the aforesaid fact.

5. Learned Standing Counsel submits
that once the bank admits that the loan is
not covered under the Uttar Pradesh Public
Moneys (Recovery of Dues) Act, 1972, the
770 INDIAN LAW REPORTS ALLAHABAD SERIES
State cannot take a different stand in the
matter.

6. Heard learned counsel for the
parties.

7. On facts it could not be disputed
that the disputed loan is an agricultural loan
within
the
ambit
of
Uttar
Pradesh
Agricultural Credit Act, 1973.

8. The Uttar Pradesh Agricultural
Credit Act, 1973 was enacted with a view
to facilitate adequate flow of credit for
agriculture production and development
through banks and other institutional credit
agencies
and
for
matters
connected
therewith. A large part of citizenry of the
State
derive
their
livelihood
from
agriculture. The legislature was sensitive to
their pecuniary conditions and economic
hardships faced by them.

9. The manner of recovery of
agricultural loan has been set out in
comprehensive detail in the Uttar Pradesh
Agricultural Credit Act, 1973 read with
Uttar Pradesh Agricultural Credit Rules,
1975.

10. Many of the features in the Uttar
Pradesh Agricultural Credit Act, 1973 are
distinct from the provisions of the Uttar
Pradesh Public Moneys (Recovery of Dues)
Act, 1972. Some of the provisions in the
Uttar Pradesh Agricultural Credit Act, 1973
(hereinafter referred to as 'the Agricultural
Credit Act') read with Uttar Pradesh
Agricultural Credit Rules, 1975 (hereinafter
referred to as 'the Rules'), which ameliorate
the conditions of the agriculturists and are
not part of the Uttar Pradesh Public
Moneys (Recovery of Dues) Act, 1972),
are discussed below.

11. The Uttar Pradesh Agricultural
Credit Act, 1973 defines "agriculture" and
"agriculturist" and reads as under:

"Section 2. Definitions.-In this
act unless the context otherwise requires----

"(a) agriculture' and ''agricultural
purpose' includes making land fit for
cultivation,
cultivation
of
land
improvement
of
land
(including
development of sources of irrigation),
raising
and
harvesting
of
crops,
horticulture,
forestry
cattle
breeding,
animal husbandry, dairy farming, piggery,
poultry
farming,
seed
farming,
pisciculture, apiculture, sericulture and
such other activities as are generally
carried on by persons engaged in any of
the aforementioned activities and also
includes-

(i)
marketing
of
agricultural
products, their storage and transport;

(b)"agriculturist" means a person
who is engaged in agriculture."

12. The other relevant Sections 2(c),
2(e) and 2(g) of the definition clauses of
the Act of 1973 are extracted below:

"Section 2(c) 'bank' means-

(iv) a corresponding new Bank
constituted under the Banking Companies
(Acquisition and Transfer of Undertakings)
Act, 1970 (Act V of 1970);

Section
2(e)
"financial
assistance" means assistance [granted,
whether before or after the commencement
of this Act] by way of loan, advance,
guarantee or otherwise (i) either to an
1 All. Manmohan Mishra Vs. State of U.P. & Ors.
771
agriculturist for agricultural purposes or (ii)
to a Co-operative Society for enabling it to
grant loans and advances to its members for
agricultural purposes;

Section (g) "prescribed" means
prescribed by rules made under this Act."

13. Rights of agriculturists to alienate
the land or interest in land in favour of
banks is provided in Chapter II of the Act
of 1973. Sections 3 and 4 of the Act of
1973 being
germane
are
reproduced
hereunder:

"Section
3.
The
State
Government may by notification in the
Gazette, vest, subject to such restrictions
as may be specified in the notification, all
bhumidhars,
[*
**]
asamis
and
Government
lessees,
with
rights
of
alienation in land held under their tenure
or any interest in such land including the
right to create a charge or mortgage or such
land or interest in favour of banks generally
or any specified class of banks for the
purpose of obtaining financial assistance
from such banks, and upon issue of such
notification, such bhumidhars, [***] asamis
and
Government
lessees
shall,
notwithstanding anything contained in any
law for the time being in force or in any
contract, grant or other instrument to the
contrary, or any custom or tradition, have a
right of alienation in accordance with he
terms of the notification.

Section 4. Charge on crop and
other movable property in favour of a
bank.-(1) It shall be lawful for an
agriculturist to create a charge on the
moveable property owned by him or on the
crops raised by him standing or otherwise
or other produce from land cultivated
by him, to the extent of his interests
therein, in favour of a bank to secure
financial
assistance
from
that
bank,
notwithstanding that he may not be owner
of the land [on and from which such crop
or produce is raised.

(2) Notwithstanding anything to
the contrary in [* **]4 the Uttar Pradesh
Co-operative Societies Act,1965 or any
other law for the time being in force, no
charge in respect of any debt or other cutstanding demand due to a co-operative
society from an agriculturist shall have
priority over a charge on the crop raised by
him, standing or otherwise, or any other
movable property in respect of any
financial assistance given to him by a bank
provided the financial assistance made by
the bank is prior in point of time to the
debt or demand of the co-operative society.
"

14. The manner creation of charge on
land in favour of a bank by declaration of
an agriculturist is provided in Section 6 of
the Act of 1973, is of critical importance to
the controversy speaks thus:

"Section 6. Creation of charge
on land in favour of a bank by
declaration.-An agriculturist desirous of
securing financial assistance from any bank
by creating a charge on land or any other
immovable property which he owns or in
which he has an interest may make a
declaration on a duly stamped paper in the
form set out in the Schedule or as near
thereto as circumstances permit, declaring
that thereby he creates in favour of the
bank a charge on such land or his Interest
therein or other immovable property, as
the case may be.]
772 INDIAN LAW REPORTS ALLAHABAD SERIES

(2) A declaration made under
sub-section (1) may be varied from time to
time by the agriculturist with the consent
of the bank in chose favour the declaration
has been made."

15. Section 6-A of the Act of 1973
deals with transfer charge or mortgage to
land
allotted
during
consolidation
operation:

"Section 6-A. Transfer of charge
or mortgage to land allotted during
consolidation operation.-Where any land
held by an agriculturist is subject to a
charge or mortgage created in favour of a
bank by an agriculturist and the rights title
and interest of the agriculturist in the said
land have ceased as a result of the
enforcement of the final consolidation
scheme under Chapter IV of the U. P.
Consolidation of Holdings Act, 1953, such
charge or mortgage shall be transferred,
and attached to the corresponding land
allotted to the agriculturist and to the
compensation, if any, payable under the
said scheme."

16. Section 7 of the Act of 1973
removes disability in creation of charges
and mortgages and reads so:

"Section
7.
Removal
of
disability in creation of charges and
mortgages.-Notwithstanding
anything
contained in the Uttar Pradesh Co-operative
Societies Act, 1965 and Uttar Pradesh Cooperative Lana Development Bank Act,
1964] or any other law for the time being in
force and notwithstanding that any land or
interest therein stands already charged or
mortgaged to a co-operative society, it shall
be lawful for an agriculturist to create a
charge or mortgage on such land or interest
therein in favour of a bank as security for
any financial assistance given to the
agriculturists by that bank."

17.

Specific
provisions
for
registration of charges and mortgage in
favour of banks are also provided in
Section 9 and the registration of discharge
certificates is contemplated in Section 9(b)
of the Act of 1973:

"Section
9.
Registration
of
charges and mortgage in favour of
banks.-(1)
Notwithstanding
anything
contained in the Registration Act, 1908, a
charge in respect of which a declaration has
been made under sub-section (1) of section
6 or in respect of which a variation has
been made under sub-section (2) of that
section, or a mortgage of any land or
interest
therein
or
other
immovable
property executed by an agriculturist in
favour of a bank in, respect of financial
assistance given by that bank shall be
deemed to have been duly registered in
accordance with the provisions of that Act
with effect from the date of execution of
such charge, variation or mortgage, as the
case may be, provided the bank has sent to
the Sub-Registrar within the local limits of
whose jurisdiction the whole or any part of
the property charged or mortgaged is
situate within a period of one month from
the date of such execution by registered
post acknowledgement due, a copy of the
document creating of such charge, variation
or mortgage duly certified to be a true copy
by an employee of the bank authorized to
sign on its, behalf and the Sub-Registrar
has filed it in Book No. 1 prescribed under
section 51 of the Registration Act, 1908.

(2) The Sub-Registrar shall, as
soon as may be, on receipt of the copy of
the document referred to in sub-section (1),
and after ascertaining that said document is
1 All. Manmohan Mishra Vs. State of U.P. & Ors.
773
duly stamped, file the copy in Book No.1
prescribed
under
section
51
of
the
Registration Act, 1908.

(3) Where the Sub-Registrar is of
the opinion that the said document is not
duly stamped or suffers from any defect
arising out of an accidental slip or
omission, he shall send back the copy of
the document to the bank requiring it to get
the deficiency in the stamp duty made good
on the original or to get the defect removed
within thirty days or within such extended
time as he sub-Registrar may allow in that
behalf.

(3-A) The bank shall get the
deficiency made good or the defect
removed,
notwithstanding
anything
contained in the Indian Stamp Act, 1899.]1

(4) After the deficiency in stamp
has been made good [or as the case may be
the defect has been removed]1 the Bank
shall send the copy of the document again
to the sub-Registrar in the manner laid
down in sub-section (1) and thereupon the
sub-Registrar shall file the copy in Book
No. 1 in accordance with the provisions of
sub-section (2).

(5)
Notwithstanding
anything
contained in the Registration Act, 1908, it
shall not be necessary for the agriculturist
or any office of the bank to appear in
person or by agent in any registration office
in any proceeding connected with the
registration of the document or to sign as
provided in section 58, of the said Act.

Section 9-B. Registration of
discharge
certificates.-Where
any
declaration or variation in respect of a
charge, or mortgage of any land or
interes therein or other immovable property
has been registered in accordance with
section 9 and the amount of financial
assistance secured hereby has been paid to
the bank or the debt has been otherwise
discharge, the bank shall issue a certificate
to that effect and the provisions of the said
section shall issue a certificate to that effect
and the provisions of the said section shall
mutatis mutandis apply to the registration
of such certificate."

18. The manner of distraint and sale
of produce and movables is provided in
Section 10-B of the Act of 1973.

"Section 10-B. Distraint and
sale of produce and movables.-(1) Where
any sum in respect of any financial
assistance granted to an agriculturist
remains unpaid on the date on which it falls
due, the bank granting the financial
assistance may apply to the Tahsildar
having jurisdiction for the recovery of the
sum due, together with expenses of
recovery, by distraint and sale of the
movable property or the crop or other
produce charged in favour of the bank.

(2)
The
provisions
of
the
Limitation Act, 1963, shall apply in
relation to an application under sub-section
(1), as if such application were a suit in a
civil court for sale of the movable property
for enforcing recovery of the sum referred
to in that sub-section.

(3) On receipt of an application
under sub-section (1) the Tahsildar or any
other official authorized by him may,
notwithstanding anything contained in any
other law for the time being force, take
774 INDIAN LAW REPORTS ALLAHABAD SERIES
action in the manner prescribed for
purposes of distraining and selling the
property referred to in that sub-section.

(4) Any sum, so recovered shall
be transferred to the bank after deducting
the expenses of recovery and satisfying the
Government dues or other prior charge, if
any."

19. Another important feature affords
an enhanced protection to agriculturists is
the manner of recovery of dues of a bank
through a prescribed authority and is
provided in Section 11 of the Act of 1973
which is extracted hereunder:

"Section 11.Recovery of dues of
a bank through a Prescribed Authority.-
(1) Notwithstanding anything contained in
any law for the time being in force, an
officer specified by the State Government
by notification in the Gazette (hereinafter
referred to as the prescribed authority) may,
on the application of a bank by order, direct
that any amount due to the bank on account
of
financial
assistance
given
to
an
agriculturist be paid by the sale of the land
and or any interest therein or other
immovable property which is charged or
mortgaged for the payment of such amount
:

Provided that no order of sale
shall be made under this sub-section unless
the agriculturist has been served with, a
notice by the prescribed authority calling
upon him to pay the amount due.

(1-A) The provisions of the
Limitation Act, 1963 shall apply in relation to
an application under sub-section (1), as if
such applications were a suit in civil court for
sale of the land or interest therein or other
immovable property for enforcing recovery
of the sum referred to in that sub-section.

(2) An order passed by the
prescribed authority shall, subject to the
result of appeal under section 12, be final
and be binding on the parties.

(3) Every order passed by the
prescribed authority in terms of subsection (1) or by the appellate authority
under section 12 shall be deemed to be a
decree of a civil court and shall be
executed in the same manner as a decree
of such court by the civil court having
jurisdiction.

(4) [* * * * ]

Section 11-A. Recovery in the
case of personal security.-(1) Where any
amount of financial assistance is .granted
by a bank to an agriculturist and the
agriculturist fails to pay the amount
together with interest on the due date, then
without prejudice to the provisions of
sections 10-B and 11, the local principal
officer of the bank by whatever name
called may forward to the Collector a
certificate
in
the
manner
prescribed
specifying the amount due from the
agriculturist.

(2) The certificate referred to in
sub-section (1) may be forwarded to the
Collector within three years from the date
when
the
amount
specified
in
the
Certificate fell due."

20. Section 12 of the Act of 1973
contemplates an appeal against any order
passed by the Prescribed Authority. Under
this provisions agriculturists can appeal
orders in recovery proceedings.
1 All. Manmohan Mishra Vs. State of U.P. & Ors.
775

"Section
12.Appeal-(1)
Any
party aggrieved by an order of the
prescribed authority under section 11 may,
within a period of thirty days from the date
of the order prefer an appeal to such
appellate authority as may be specified by
the State Government by notification in the
Gazette.

(2) The appellate authority may,
after giving an opportunity of hearing to the
parties, pass such order as it think fit."

21. The recovery of dues from legal
representatives of an agriculturist who dies
before liquidating any financial dues
against him is provided in Section 12-B of
the Act of 1973 as under:

"Section 12-B. Recovery of
dues from legal representatives.- (1)
Where an agriculturist dies before the dues
in respect of any financial assistance
granted to him have been fully satisfied, the
bank or the Tahsildar referred to in section
10-B or the prescribed authority referred to
in section 11 or the Collector referred to in
section 11-A may proceed against the legal
representatives of the agriculturist for the
recovery of the dues.

(2) Where, the proceedings are
taken for the recovery against such legal
representatives, they shall be liable only to
the extent of the property of the deceased
which has come to their hands and has not
been duly disposed of and for the purpose
of ascertaining such liability, the Tahsildar
or the prescribed authority or the Collector,
as the case may be, may suo motu or on
application of the bank compel such legal
representatives to produce such account as
he or it thinks fit."

22. The manner of recovery of
dues from sureties is stated in Section 12-C
of the Act of 1973 and is extracted below:

"Section 12-C. Recovery of
dues from sureties.-The provisions of this
Act relating to the recovery of dues from an
agriculturist and his legal representatives
shall mutatis mutandis apply to the
recovery of such dues from a surety who
enters into a contract of guarantee to
perform any promise or discharge the
liability of an agriculturist in case of his
default and to the legal representatives of
such surety."

23. Exemption from legislations
relating to money-lending and agriculturists
debt relief is given to an agriculturist in
regard to financial assistance by a bank
under Section 21 of the Act of 1973:

"Section 21. Exemption from
legislations relating to money-lending
and agriculturists debt relief.-Nothing in
any law for the time being in force dealing
with money-lending or agriculturist's debt
relief shall apply to financial assistance
given to an agriculturist by a bank."

24. The Rules framed under the Uttar
Pradesh Agricultural Credit Act, 1973 are
called the Uttar Pradesh Agricultural Credit
Rules, 1975. Chapter III of the Rules
contains detailed provisions for distraint
and sale of movables. Rule 22 of the Rules
of 1975 contemplates as under:

"Rule
22.
Release
of
the
property before sale : Sections 10-B and
25. - Where, prior to the date fixed for
sales, the agriculturist or his heirs or legal
representatives or any person acting on his
776 INDIAN LAW REPORTS ALLAHABAD SERIES
behalf or any person claiming an interest in
the property distrained pays the full amount
due, including interest, and other expenses
incurred in the distraint and sale of the
property charged the Tahsildar shall not
proceed with the sale and shall release the
property forthwith."

25. Chapter IV of the Rules of 1975
pertains to sale of land or interest therein.

"Rule 23. Application for sale
of land or interest therein : Sections 11
and 25. - (1) Where any charge or
mortgage has been created on any land or
interest or on any other immovable
property in favour of a bank in respect of
any financial assistance granted to an
agriculturist and the whole or any part of
amount due in respect thereof remains
unpaid, the bank may apply to the
Prescribed Authority for the sale of such
land, of interest therein or other immovable
property.

(2) Every application by a Bank
under sub-rule (1) shall be in Form D. The
application shall be accompanied by
sufficient number of copies thereof along
with copies of notices in Form E for service
on the agriculturist or his heirs or legal
representatives, as the case may be.(3) A
fee at the rate specified in Rule 12(3) shall
be payable on every application referred to
in sub-rule (1). The amount of fee shall be
deposited in Government Treasury of the
State Bank of India under the Head
mentioned in Rule 12(3) and the Treasury
Challan shall be attached to the application
as evidence of payment of the prescribed
fee.(4) An attested copy of the document
creating the charge of mortgage shall be
filed along with application referred to in
sub-rule (1). But the Prescribed Authority
may summon the original as and when it is
considered necessary.

Rule
24.
Notice
to
the
agriculturist : Sections 11 and 25. - (1)
On receipt of the application referred to in
Rule 23, the Prescribed Authority shall
cause to be noted thereon, the date of its
presentation, and if it is satisfied that the
application is in order, a notice in Form E
shall be served on the agriculturist, his heir
or legal representatives, as the case may be,
calling upon him to pay the amount
specified in the notice within a period of
twenty-one days or to show cause why a
direction for the sale the property charged
or mortgaged be not issued.(2) The notice
referred to in sub-rule (1) shall be served in
the manner laid down in Rule 14.

Rule 25. Order for sale of the
property : Sections 11 and 25. - (1) If
the amount specified in the notice
referred to in Rule 24 or any part thereof
remains unpaid after the expiry of the
time allowed therefor, or if no cause is
shown; or where the cause shown is
considered by the Prescribed Authority to
be in sufficient, the Prescribed Authority
shall by order direct that the amount due
to the bank be paid by sale of the
property charged or mortgaged.(2) Every
order under sub-rule (1) shall be in
writing and shall contain the following
particulars -

(a) the reasons on which the
decision is based ;

(b) a direction as to costs and
interest, if any ;

(c) the number of cases, and the
names and description of the parties ;
1 All. Manmohan Mishra Vs. State of U.P. & Ors.
777

(d) the date when the order was
signed and pronounced.

(3) A copy of the order under
sub-rule (1) shall be sent to the Civil Court
having jurisdiction and, subject to the result
of appeal, if any, shall be executed as a
decree of such court."

26. Chapter V of the Rules of 1975
also has an important bearing on the
controversy since it pertains to recovery of
dues as arrears of land revenue. The
relevant provisions are reproduced as
under:

"Rule 26. [* * *]

Rule 27. Certificate of recovery
: Sections 11-A and 25. - Every certificate
referred to in sub-section (1) of Section 11A shall be prepared in Form F and shall be
sent to the Collector of the district in which
the agriculturist or his heirs or legal
representatives ordinarily reside or carry on
the activities referred to in Section 2(a) or
own properties.

Rule 28. Recovery as arrears
of land revenue : Sections 11-A and 25.
- On receipt of the certificate in
accordance with Rule 27, the Collector
shall cause the same to be entered in a
register maintained for the purpose and
shall proceed to recover the amount
specified in the certificate as arrears of
land revenue.

Rule 29. Utilisation of the
amount recovered : Sections 11-A and
25. - The amount recovered under Rule
21 or Rule 28 shall be utilized in the
following manner:

(a) Firstly, for meeting the
expenses of recovery which shall be
charged at the rate of ten per cent (or at
such other rate as the State Government in
the Revenue Department may from time to
time fix in this behalf) on the amount of the
claim ;

(b) Secondly, for payment of the
Government dues or other prior charges, if
any ;

(c) Thirdly, for payment of the
dues of the bank.;

(d) The balance, if any, shall be
paid to the person from whom the recovery
was made.

Rule 30. Remittance to Bank :
Sections 11-A and 25. - The account
referred to in clause (c) of Rule 29 shall be
remitted to the Bank as far as possible
within one month from the date of recovery
-

(i) by money order, if it docs not
exceed rupees twenty-five; and

(ii) by bank-draft or by postal
order, if it exceeds rupees twenty-five."

27. The procedure before the learned
appellate authority is laid out in Chapter VI
of the Rules of 1975, which includes filing
an appeal, hearing of the appeal, order of
the learned appellate authority and also
adjournment of hearing, speak thus:

"Rule 31. Appeal : Sections 12
and 25. - (1) Every appeal under Section
12 shall be presented in the form of a
memorandum setting forth concisely the
778 INDIAN LAW REPORTS ALLAHABAD SERIES
grounds of objection to the order appealed
against. A certificate copy or a typed
attested copy of such order shall invariably
be attached to the memorandum.

(2) The memorandum of appeal
shall be accompanied by sufficient number
of copies thereof along with copies of
notices in Form G for service on the
respondents."(3) The provisions of Rule 23
(3) and Rule 24 shall mutatis mutandis
apply to an appeal under Section 12 as they
apply to an application under Section 11(1).

Rule 32. Hearing of appeal.:
Sections 12 and 25. - (1) Where the
appellate authority is of the opinion that the
memorandum of appeal suffers from any
defect it shall make a note to that effect and
shall call upon the appellant to remove the
same.(2) If the defects pointed out by the
appellate authority arc removed within the
period specified therefor or within such
extended period as the appellate authority
may from time to time grant, the latter may
admit the appeal for hearing.(3) If the
appellant fails to remove the defects within
the period specified in sub-rule (2), or if the
appeal is beyond the limitation specified in
Section 12(1), the appellate authority shall,
subject to the provisions of Section 24,
reject the appeal.(4) Where the appeal is
admitted, the appellate authority shall fix a
date for hearing and the notice of the date
of hearing shall be served on the
respondent in Form G. An intimation of the
date shall also be sent to the appellant.

Rule 33. Order of the appellate
authority : Sections 12 and 25. - (1) On
the date fixed for the hearing of an appeal,
the appellate authority shall go through the
record and hear the parties to the dispute or
their authorised agents and shall pass such
order on the appeal as the appellate
authority may deem fit.(2) The provisions
of sub-rules (2) and (3) of Rule 25 shall
mutatis mutandis apply to every order
made under this rule.

Rule
34.
Adjournment
of
hearing : Sections 12 and 25. - The
appellate authority may, in its discretion,
adjourn to any other date the hearing of any
appeal at any stage."

28. Chapter VII of the Rules of 1975
contains other miscellaneous provisions
including
issuance
of
summons,
memorandum of oral evidence, ex parte
orders, certified copy, return of documents,
processes how to be issued and disposal of
property by bank which read as under:

"Rule 35. Issue of summons :
Sections 10-B, 11, 12 and 25. - (1) The
Tahsildar, the Prescribed Authority or the
appellate authority, as the case may be,
may issue summons for the attendance of a
witness, provided the party concerned
deposits in advance such amount towards
expenses as officer or authority concerned
considers necessary for securing such
attendance.

(2) The summons shall require
the person summoned, to appear before the
said officer or authority at a staled time and
place, and the summons so issued shall
specify whether his attendance is required
for the purpose of giving evidence or to
produce any documents or for both. Any
particular document the production of
which is required for the purpose, shall be
described in the summons with reasonable
accuracy.(3) Any person may be required
to produce a document, without being
summoned to give evidence and such
person shall produce the required document
personally or may send it by registered
1 All. Manmohan Mishra Vs. State of U.P. & Ors.
779
post.(4) The summons may be served in the
manner specified in Rule 14 or by any
other mode specified in the Code of Civil
Procedure, 1908.

Rule 36. Memorandum of oral
evidence : Section 25. - The Tahsildar, the
Prescribed Authority or the Appellate
Authority shall make a memorandum of
any oral evidence admitted by him or it.

Rule 37. Ex parte orders :
Section 25. - (1) In the case of absence of
any party the case may be decided ex
parte.(2) The Tahsildar, the Prescribed
Authority or the Appellate Authority may
on an application being made in that behalf,
and for sufficient cause -

(a) set a side an ex parte order, or

(b) restore an application or
appeal dismissed for default of appearance
of the applicant, or the appellant as the case
may be.

(3) An application under sub-rule
(2) shall be made within thirty days from
the date of the ex parte order or from the
date of dismissal of application or appeal
and in the case of an ex parte order, where
the notice was not duly served on the
applicant, within thirty days from the date
of
knowledge
of
such
order.(4)
Notwithstanding anything contained in subrule (3), no application referred to in subrule (2) shall be entertained -

(a) in the case of any movable
property, if such property has already been
sold, and

(b) in the case of any
immovable property, if the sale has already
been confirmed.

Rule
38.
Certified
copy
:
Section 25. - (1) Any person affected by an
order
passed
by
the
Tahsildar,
the
prescribed authority or the appellate
authority shall be entitled to be furnished
with a certified copy thereof and any other
connected document on application duly
made in that behalf.(2) Every application
for certified copy shall be accompanied by
the requisite copying charges, The scale of
charges shall be the same as laid down for
the criminal courts subordinate to the High
Court.

Rule 39. Return of documents :
Section 25. - (1) Every document or record
tendered by a party or any other person
may, on application, be returned to such
party or person after the disposal of appeal
and where no appeal is filed, after the
expiry of the period for appeal. No fees
shall be charged for return of said
documents or records.(2) The original deed
of charge, the variation or mortgage in
possession of the bank shall be returned to
the agriculturist or his legal representatives
after the bank's dues arc discharged in full.

Rule 40. Processes how to be
issued : Section 25. - Every order, notice,
summons or intimation issued by any
officer or authority under the Act or these
Rules shall be in writing and shall bear the
signature of such officer or authority or
such authority as may be authorised in this
behalf, and shall be authenticated by the
seal of such officer or authority.
780 INDIAN LAW REPORTS ALLAHABAD SERIES

Rule 41. Disposal of property
by bank : Sections 12-A and 25. - (1)
Where a bank acquires any land or any
interest therein or any other immovable
property under Section 12-A, it shall
dispose it of by a registered sale-deed in
favour of an agriculturist within a period of
one
year
from
the
date
of
such
acquisition.(2)
A
bank
desirous
of
transferring the property referred to in subrule (1) after the expiry of the period
referred to in the said sub-rule, shall have
to obtain prior approval of the State
Government,
in
the
Revenue
Department.(3)
Every
application
for
permission to transfer a property under subrule (2) shall be sent to the Secretary to the
Government of Uttar Pradesh in the
Revenue
Department,
Council
House,
Lucknow, and if no reply is received within
six months from the date of receipt of such
application
by
the
Government
the
application for permission shall be. deemed
to have been granted."

29. From the scheme of the Uttar
Pradesh Agricultural Credit Act, 1973 as
discussed earlier, it is evident that the Uttar
Pradesh Agricultural Credit Act, 1973 is an
enactment created for a special purpose and
a
specific
class
of
citizens
namely
agriculturists, who have taken agricultural
loans. The provisions of Uttar Pradesh
Agricultural Credit Act, 1973 confer
special benefits and provide for additional
protection to agriculturists who default in
payment of loans. Many features of the
Uttar Pradesh Agricultural Credit Act, 1973
show that it is a beneficial legislation
created for agriculturists.

To the contrary, the Uttar Pradesh
Public Moneys (Recovery of Dues) Act,
1972 is a prior legislation which is a
general nature. It is settled rule of statutory
construction that the special enactment
shall prevail over the general statute.
Further the Uttar Pradesh Public Moneys
(Recovery of Dues) 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.

30. In case the proceedings are taken
out against the agriculturists for the
recovery of agricultural loan under the
Uttar Pradesh Public Moneys (Recovery of
Dues) Act, 1972, agriculturists will be
prejudiced as the said Act, does not provide
the same protection as is envisaged in the
Uttar Pradesh Agricultural Credit Act,
1973.

31. Canon of statutory interpretation
that special law shall prevail over the
general law flowing from the maxim
"Generalia specialibus non derogant", have
settled the proposition with good and
consistent authorities. [References: G.P.
Singh's
Principles
of
Statutory
Interpretation1,
Suresh
Nanda
Vs.
C.B.I.2, Rajan Sandhi P. Vs. Union of
India and another3, Commercial Tax
Officer, Rajasthan Vs. M/s. Binani
Cements Ltd. and another4, Sharat
Babu Digumarti Vs. Govt. of NCT of
Delhi5, and Raheja Universal Limited
Vs. N.R.C. Limited and others6.]

32. In such view of the matter and in
the facts of the instant case, the Uttar Pradesh
Agricultural Credit Act, 1973 shall be
applicable to the case of the petitioner and
shall prevail over the Uttar Pradesh Public
Moneys (Recovery of Dues) Act, 1972.

33. In the wake of preceding
discussion, the recovery certificate dated
1 All. Kenisha Singh Jeet Vs. State of U.P. & Ors.
781
29.06.2019 issued by the respondent No.5Bank is beyond jurisdiction.

34.