- (1.) This order shall dispose of Civil Writ Petition No. 17160 of 1989 and Civil Writ Petition No. 789 of 1990 filed by the firm and the partner, respectively in respect of recovery certificate issued by the Haryana Financial Corporation to recover its dues in respect of the loan advanced to the firm.
(2.) The firm was advanced loan on the basis of registered mortgaged deed dated 24.1.1975. The firm did not pay the loan amount as per the terms agreed and, therefore, the Haryana Financial Corporation initiated proceedings under Section 31 of the State Financial Corporation Act, 1951 (hereinafter referred to as the 1951 Act). The said petition was decreed on 7.1.1980. But on 17.9.1987, the Corporation issued a Recovery Certificate under Section 3 of the Haryana Public Moneys (Recovery of Dues) Act, 1979 (hereinafter referred to as the 1979 Act) against the firm and the partners. The said recovery certificate is subject is subject matter of challenge in the present writ petitions.
(3.) It is the case of the petitioners that once the Corporation has initiated proceedings under Section 31 of the 1951 Act, it is not permissible for the Corporation to proceed under the 1979 Act and, therefore, the recovery certificate issued under the said Act is illegal.;