- (1.) This judgment will dispose of Civil Writ Petitions No. 6455 of 1989, 16415 of 1989, 7612 of 89 and 8019 of 1989 since common questions of law and facts are involved therein.
(2.) Reference to relevant facts for resolving the question of law arising for determination has been made from the pleadings in Civil Writ Petition No. 6455 of 1989.
(3.) Safidon Gram Udyog Samiti, Safidon is a Society registered under the Societies Registration Act, 1860 (for brevity the Society). Respondent No. 1 advanced a loan of Rs. 20,000 / - to the Society. The petitioner stood as a surety for repayment of the loan by the Society and mortgaged his share in shop No. 15, Anaj Mandi, Safidon in favour of respondent No. 1. Respondent No. 1 further advanced a loan of Rs. 48,000.00 to the Society. The petitioner mortgaged additional properties in favour of respondent No. 1 vide mortgage deed dated 12/06/1984. The loan of Rs. 20,000.00 was utilized in accordance with the terms and conditions prescribed in the loan utilization certificate. Respondent No. 1 recalled the entire loan from the Society vide letter dated 30/10/1987. The loan was recalled for non-payment of the instalments and the interest accrued on the principal amount. It was also stated in the letter that if the loan was not repaid the amount would be recovered as arrears of land revenue and by sale of mortgaged property. The Society filed representation to respondent No. 1 for recalling the loan abruptly. Respondent No. 1 issued recovery certificate No.101 dated 27-12-1988 for recovery of Rs.1,00,651.00 and interest thereon and forwarded the same to the Collector, Jind for, taking action under S. 3(8) of the Land Revenue Act for recovering the amount as arrears of land revenue. The recovery certificate was issued without any notice to the petitioner. Respondent No. 1 issued the certificate in exercise of powers under S. 32-A of the Punjab Khadi and Village Industries Board Act, 1955 (for short the Act). The vires of S. 32-A of the Act have ben challenged on the ground that it is beyond the legislative competence of the State Legislature.;