3. (1) Where any person is party
(a) to any agreement relating to a loan, advance or grant given to him or relating to credit in respect of, or relating to hire purchase of, goods sold to him by the State Government or the Corporation, by way of financial assistance ; or
(b) to any agreement relating to a loan, advance or grant given to him or relating to credit in respect of, or relating to hirepurchase of, goods sold to him, by a banking company or a Government company, as the case may be, under a Statesponsored scheme; or
(c) to any agreement relating to a gurantee given by the State Government or the Corporation in respect of a loan raised by an industrial concern; or
(d) to any agreement providing that any money payable thereunder to the State Government [ or the Corporation] shall be recoverable as arrears of land revenue; and such person
(i) makes any default in repayment of the loan or advance or any instalment thereof; or (ii) having become liable under the conditions of the grant to refund the grant or any portion thereof, makes any default in the refund of such grant or portion or any instalment thereof ; or
(iii) otherwise fails to comply with the terms of the agreement,br
then, in the case of State Government, such officer as may be authorized in that behalf by the State Government by notification in the official Gazette, and in the case of the Corporation or a Government company the Managing Director [ or where there is no Managing Director then the Chairman of the Corporation, by whatever name called] [ or such owner of the Corporation or Government Company as may be authorized in that behalf by the Managing Director or the Chairman] thereof, and in the case of a banking company, the local agent thereof, by whatever name called may send a certificate to the Collector, mentioning the sum due from such person and requesting that such sum together with costs of the proceedings be recovered as if it were an arrear of land revenue.
(2) The Collector on receiving the certificate shall proceed to recover the amount stated therein as an arrear of land revenue.
(3) No suit for the recovery of any sum due as aforesaid shall lie in the civil court against any person referred to in sub-section (1).
[ (4) In the case of any agreement referred to in sub-section (1) between any person referred to in that sub-section and the State Government or the Corporation, no arbitration proceedings shall lie at the instance of either party for recovery of any sum claimed to be due under the said sub-section or for disputing the correctness of such claim
.
Provided that whatever proceedings are taken against any person for the recovery of any such sum he may pay the amount claimed under protest to the officer taking such proceedings, and upon such payment the proceedings shall be stayed and the person against whom such proceedings were taken may make a reference under or otherwise enforce an arbitration agreement in respect of the amount so paid, and the provisions of section 183 of the Uttar Pradesh Land Revenue Act, 1901, or section 287-A of the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950, as the case may be, shall mutatis mutandis apply in relation to such reference or enforcement as they apply in relation to any suit in the civil court.
(5) Save as otherwise expressly provided in the provisions to sub-section (4) of this section or in section 183 of the U.P. Land Revenue Act, 1901 or section 287-A of the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950 every certificate sent to the collector under sub-section (1) shall be final and shall not be called in question in any original suit, application (including any application under the Arbitration Act, 1940) or in any reference to arbitration, and no injunction shall be granted by any court or other authority in respect of any action taken or intended to be taken in pursuance of any power conferred by or under this Act.[