JAWAHAR LAL GUPTA, J. - (1.) Is the action of the Punjab State Industrial Development Corporation Limited in ordering that"the possession of the properties including collateral securities". . . . . . . ."mortgaged/hypothecated property . . . . . . . .for the recovery of outstanding dues" illegal and violative of the principles of natural justice? This is the short question that arises for consideration in this petition.
(2.) A few facts as relevant for the decision of this case may be briefly noticed.
(3.) M/s. Royal Cements Limited (Respondent No. 2) undertook a project to set up a unit for the manufacture of cement. This company was promoted by three brothers viz. M/s. Kuldip Singh, Harmeet Singh and Jagjit Singh (petitioner No. 2). The promoters had applied to the respondent-Corporation for the sanction of loan. On 25/09/1996 an amount of Rs. 250 lacs was sanctioned by way of loan. Another amount of Rs. 30 lacs was sanctioned by way of a bridge loan. On 31/03/1997 an amount of Rs. 2 crores was disbursed. On 9/05/1997 the company got another amount of Rs. 35 lacs. It is also the admitted position that on 31/03/1997 the company had availed of a subsidy of Rs. 24 lacs. Thus, a total amount of Rs. 259 lacs was availed of by the company.;