S.P.MEHROTRA, J. - (1.) THIS writ petition under Articles 226/227 of the Constitution of India has been filed by the petitioner, inter alia, praying for issuance of writ, order or direction in the nature of certiorari quashing the citation dated 25 -3 -2000 (Annexure No. 9 to the writ petition) insofaras it relates to the petitioner regarding the schedule 'SA' property mentioned in the recovery certificate (Annexure No. 8 to the writ petition), and further for issuance of writ, order or direction in the nature of mandamus directing the respondents not to recover the loan concerning to M/s. Deepak Rice Mills (P.) Limited by selling the mortgaged property mentioned in schedule 'SA' of the recovery certificate, and further for issuance of writ, order or direction in the nature of mandamus directing the respondents not to proceed to recover the loan from the personal property of the petitioner until or unless a certificate is issued by the Collector concerned stating that the loan had not been recovered fully by selling the unit, machinery and other mortgaged property mentioned in schedule 'SA' of the recovery certificate.
(2.) IT is, inter alia, alleged by the petitioner in the writ petition that the company in the name of M/s. Deepak Rice Mills (P.) Limited, situated at Azizpur, Kosikalam, Mathura was constituted under the Companies Act. 1956, and that the petitioner along with Prakash Chand Agarwal, Pratap Chand Agarwal and Surendra Kumar Verma were Directors of the said company, and that the company was constituted to run rice mill. It is, inter alia, further alleged by the petitioner that the said company was disbursed loan in eight Instalments from 1992 to 1997 to the tune of Rs. 2,29.97,400/ - principal amount out of which Rs. 60,49,800/ - towards the principal amount and interest thereon has already been paid by said company, and thus, an amount of Rs. 1,69,57,600/ - has remained outstanding against the said company. It is inter alia, further alleged by the petitioner that there was no default of instalment till December, 1996, however, due to financial crisis and due to non -availability of raw materials one of the instalments had fallen due, and that the U. P. Financial Corporation by its letter dated 30 -3 -1997 took over physical possession over M/s. Deepak Rice Mill (P.) and M/ s. Deepak Puha Udyok, Chhata, Mathura in exercise of its power under Section 29 of the State Financial Corporation Act, 1951. It is, inter alia, further alleged by the petitioner that the U. P. Financial Corporation on 6 -1 -1998 published an advertisement in the newspaper for sale of the unit of M/s. Deepak Rice Mill (P.) Limited along with itssister concern i.e. Poha unit, and that another advertisement was published by the U. P. Financial Corporation in the newspaper on 8 -3 -1998 for sale of the unit of the said company, and thus the U. P. Financial Corporation started proceeding under Section 29 of the State Financial Corporation Act, 1951 for sale of the unit of the said company. It is, inter alia, further alleged by the petitioner that the cost of the unit including the land, building, plants and machinery was not less than Rs. Four crores at the time of commissioning, if the cost of sister con -'cern unit were included for the same. It is, inter alia, further alleged by the petitioner that the petitioner submitted his resignation from directorship by letter dated 1 -10 -1997 (Annexure No. 5 to the writ petition) as is evident from form No. 32 (Annexure No. 5 to the writ petition) submitted under Section 303(2) of the Companies Act, and thus the petitioner continued as director only during the period 7 -2 -1992 to 1 -10 -1997.
(3.) IT is, inter alia, further alleged by the petitioner that a notice dated 18 -2 -2000 was issued by the Assistant Registrar (Companies) U. P. Kanpur under Section 628 of the Companies Act, 1956. The said notice has been filed as Annexure No. 6 to the writ petition. The said notice indicates that the petitioner, K.C. Jain ceased to be a director of the said company on 19 -1 -1998.;