VIRENDRA KUMAR SINHA Vs. STATE OF BIHAR

JUDGEMENT

(1.) HEARD Mr. Binod Poddar, learned counsel for the petitioners, Mr. Kameshwar Prasad, learned Sr. counsel appearing for the respondent -State Bank of India and Mr. P.K. Shahi, learned counsel appearing for the Bihar State Financial Corporation and Mr. Sunil Kumar Sinha for respondent No. 6.

(2.) THE petitioner have filed this writ petition praying, inter alia, for quashing the entire certificate proceeding being Certificate Case No. 3/85 -86 pending before the District Certificate Officer, Palamau and further for a direction to the respondent -State Bank of India, Chandwa Branch to release and debit the amount involved in the certificate case from respondent No. 6.

(3.) ADMITTEDLY , the petitioners, as partners of the firm, were advanced loan by the respondent -Bank much before 1985 and on the account of non -payment of the loan amount a Certificate Proceeding was initiated by the Bank for the recovery of the outstanding dues. It is also the admitted fact that some development took place in 1987 and firm was dissolved and a new Company came into existence. According to the petitioners sum of Rs. 3.50 lacs was disbursed by the Corporation in favour of State Bank of India for the liquidation of the dues of the firm whereas the respondents ' case is that no such draft in the name of the firm was never issued by the Corporation for the liquidation of the dues. Besides the above serious disputed questions of fact have been raised by the parties in this writ petition.