S.P.MEHROTRA, J. - (1.) THIS writ petition under Article 226 of the Constitution of India has been filed by the petitioners, inter alia, praying for issuance of writ, order or direction in the nature of certiorari quashing the impugned recovery certificate dated 26.3.2002 issued by the U.P. Financial Corporation against the petitioners (Annexure No. 5 to the writ petition) and further for issuance of writ order or direction in the nature of mandamus declaring the recovery proceeding in pursuance of the recovery certificate dated 26.3.2002 as barred by limitation for recovery of the loan of the year 1986.
(2.) IT is, inter alia alleged by the petitioners that M/s. GEE Kay Pipes Pvt. Ltd. is registered under the Companies Act, 1956, and that the petitioner No. 1 is the Managing Director and the petitioner No. 2 is the Director of the said company, and that the U.P. Financial Corporation agreed in the financial year 1986 -87 to grant term loan of Rs. 27,86,250/ - for machinery/equipment and other assets in favour of the said company, and that sum of Rs. 26,03,050/ - could be released by the U.P. Financial Corporation out of the sanctioned amount of Rs. 27,86,250/ - upto the year 1987 -88 and the unit became established. It is, inter alia further alleged by the petitioners that within four years of the term loan by the U.P. Financial Corporation, the U.P. Financial Corporation (respondent Nos. 1 and 2, took over the possession of the unit under Section 29 of the State Financial Corporation Act, 1951 in the year 1991 -92, and that the sale of the land, building of the unit of the company was made in September, 2001 for a sum of Rs. 3,75,000/ - and the sale of the machinery etc., of the unit of the company was made on 12.2.2002 for a sum of Rs. 75,000/ -.
(3.) IT is, inter alia further alleged that the recovery certificate dated 26.3.2002 (Annexure No. 5 to the writ petition) was issued by the Managing Director, U.P. State Financial Corporation 14/88 Civil Lines, Kanpur Nagar, respondent No. 4 under Section 3 of the U.P. Public Moneys (Recovery of Dues) Act, 1972 whereby Collector/District Magistrate. Kanpur Nagar was asked to make recovery against the petitioners. The recovery certificate dated 26.3.2002 (Annexure No. 5 to the writ petition) states that the petitioners had executed personal bond of guarantee in favour of the U.P. Financial Corporation for repayment of loan given to the said company namely M/s. GEE Kay Pipes Private Limited.;