- (1.) WE have heard Shri Siddharth, learned counsel appearing for the petitioners. Learned Standing Counsel appears State respondents. Shri Rohit Agarwal appears for Bijnor Urban Cooperative Bank Ltd, Bijnor -respondent no.4.
(2.) THE petitioner no.1 is a company incorporated under the provisions of Companies Act, 1956 with its registered office at Bijnor -Hardwar Road, Bijnor. Shri Ashwani Kumar Singh -petitioner no.2 is the Director of the company. By this writ petition the petitioners have challenged the recovery of Rs.80,36,088/ - and interest and other dues vide citation dated 25.9.2012 towards recovery of the loan by the bank under Section 92 of UP Cooperative Societies Act, 1965 from the company and its Director for recovering the financial assistance given to the petitioners with interest and other dues.
(3.) IT is stated that the petitioner -company required money for production. It approached the respondent -bank for extending the financial help by an application dated 1.12.1995. The loan was processed and sanctioned on 11.12.1995. The first instalment of Rs. 4 lac was disbursed on the same day on 11.12.1995. The second instalment of Rs. 4 lacs was disbursed on 12.12.1995 and the third instalment of Rs.2,95,000/ - was disbursed on 19.12.1995. The loan was to be paid in 20 quarterly instalments starting from June, 1996. It is submitted that in the year 1996 the cement industry faced a heavy recession in the State of UP and thus in December, 1996 the entire production of the company was stopped. The company faced huge financial losses on which it approached the Board of Industrial and Financial Reconstruction (BIFR). The application was registered as Case No.305/1999 on 10.9.1999 vide intimation received from BIFR on 27.9.1999. The bank was duly informed on 11.10.1999. The bank treated the account as 'non -performing asset' in the year 1996.;