- (1.) THIS petition filed under Article 226 of the Constitution prays for quashing summons dated 24-5-2007, issued by respondent No. 3 (P-4 and P-5) and for issuance of directions to the respondents not to recover an amount of Rs. 2,77,85,429/-or any other amount from the petitioners, who are guarantors of the loan obtained by M/s. Kurukshetra Paper Mills pvt. Limited.
(2.) BRIEF facts of the case are that M/s. Kurukshetra Paper Mills Pvt. Limited, kurukshetra (for brevity, 'the borrower'), obtained a term loan of Rs. 120 lacs from the Haryana Financial Corporation-respondent no. 1, vide loan agreement dated 7-8-1997 and the petitioners stood as guarantors against that loan. The loan was to be repaid in 27 quarterly instalments along with interest @ 19% per annum. The 27th instalment was to be paid by 1-8-2005. It was also stipulated that if the last instalment was paid on 6-8-2005, no penal interest was to be added. In July 1999, the unit of the borrower started production. On 4-10-2001, respondent No. 2 accepted the request of the borrower for re-scheduling the entire outstanding amount as well as extension for 2 years till 6-8-2007, subject to the conditions that the borrower was to pay Rs. 1,00,000/-as down payment (which werereceived on 28-9-2001), rs. 3,00,000/- in October, 2001, Rs. 2,80,800/- each per month from November, 2001 to March, 2001, It was further manifested that after extending the period of 2 years, balance outstanding amount including accrued interest was to be paid in 22 equal quarterly instalments of Rs. 12. 32 lacs starting from april, 2002 till 6-8-2007. Balance, if any, was to be paid within currency of loan. It was specifically mentioned in the letter dated 4-10-2001 that even a single default was to attract legal action including taking over possession of the unit and the Corporation was to charge higher rate of interest on the amount rescheduled (P-2 ). It is alleged that the petitioners were not called upon to give their consent regarding variations in the terms of original loan agreement. On 11-1-2002, respondent No. 2 further accepted the request of the borrower and currency period of loan amount was further extended up to 6-8-2008 (P-3 ).
(3.) IT is claimed that respondent No. 1 corporation forced the borrower to pay an amount of Rs. 9,62,856/- in December 1998 before start of production and from 4-8-1998 to 27-12-2001, an amount of Rs. 44,82,656/-was paid by it. On 19-2-2002, possession of the unit was taken over by the respondent-Corporation and on 24-2-2003, entire property including plant, machinery and additional machinery of the unit of m/s. Kurukshetra Paper Mills Pvt. Limited was sold for an amount of Rs. 47,50,000/- in favour of one Shri Sanjay Singla. The respondent-Corporation further sold other collateral securities and properties of the guarantors valuing rs. 98,85,000/ -. In this manner, Rs. 1,43,67,656/-are stated to have been recovered by the respondent-Corporation. It has still further been claimed that on 16-7-2004, two plots measuring 218 sq. ft. with residential constructed building, situated in Ward No. 6, Pehowa, being House no. 542, belonging to the petitioner No. 3 had been sold for an amount of Rupees 13,00,000/ -. Now, summons dated 24-5-2007 (P-4 and P-5) have been issued by the tehsildar, Thanesar (respondent No. 3) requiring the petitioners to pay an amount of rs. 2,77,85,429/- being outstanding amount towards the respondent-Corporation.;