HIGH COURT OF JUDICATURE AT ALLAHABAD ?Court No. - 36 Case :- WRIT - C No. - 18823 of 2011 Petitioner :- M/S Sweet Plastic Pipes Private Ltd. Respondent :- U.P. Financial Corporation And Others Petitioner Counsel :- Kailash Nath Kesharwani Respondent Counsel :- C. S. C. Hon'ble Satya Poot Mehrotra,J.
Hon'ble Rajesh Chandra,J.
The present Writ Petition has been filed making the following prayers:
"(i) issue a writ, order or direction in the nature Certiorari quashing the impugned recovery certificate dt. 7.2.2011 (Annexure No.1) issued by the respondent No. 1/2.
(ii) issue a writ, order or direction in the nature of mandamus directing and commanding the respondents not to recover any amount on the basis of impugned recovery certificate dt. 7.2.2011 (Annexure No.1) and also not to take any coercive measures in pursuance thereof.
(iii) issue a writ, order or direction in the nature of mandamus commanding the respondents to consider and decide the One Time Settlement proposal submitted by the petitioner vide application dt. 5.1.2011 and 24.1.2011 (Annexure No. 3 and 4 respectively).
(iv) issue any other writ, order or direction, which this Hon'ble the Court may deem fit and proper in the circumstances of the case.
(v) award the cost of the petition in favour of the petitioner."
It appears that the petitioner took loan from the respondent no.2-U.P. Financial Corporation in the year 1988 for setting up PVC Regit Pipe Manufacturing Unit.
The petitioner committed default in respect of the said loan. Consequently, recovery proceedings have been initiated against the petitioner.
In the mean-time, the petitioner submitted an Application dated 24.1.2011/17.2.2011 for consideration of proposal for One Time Settlement before the respondent no.2. Copy of the said Application has been filed as Annexure-4 to the Writ Petition. Along-with the said Application, an amount of Rs. 1 lac was also deposited by the petitioner as is evident from Annexure 5 to the Writ Petition.
In response to the said Application submitted by the petitioner, the respondent no.2 sent a Communication dated 22.2.2011 (Annexure 6 to the Writ Petition) to the petitioner.
Relevant portion of the said Communication dated 22.2.2011 is reproduced below:
"As you have been informed vide our letter No. 1956 dated 12.11.2010 that you have to deposit required earnest money to the extent of 10% of Outstanding amount as Earnest money enabling the Corporation to consider your O.T.S. proposal. In spite of payment of required earnest money of Rs. 5.25 lacs you have requested vide your letter dated 17.2.2011 to consider O.T.S. proposal on principal amount only and you have paid only a Sum of Rs. 1.00 lac instead of Rs. 5.25 lacs.
You are once against advised to submit your O.T.S. proposal alongwith balance required earnest money i.e. Rs. 4.25 lacs by 28.2.2011 positively falling which we have no alternate to recover the dues, for which action has already been initiated."
We have heard Shri B.D. Madhyan, learned Senior Counsel assisted by Shri Kailash Nath Kesharwani, learned counsel for the petitioner, Shri S.K. Srivastava, learned counsel for the respondent nos. 1 and 2 and the learned Standing Counsel appearing for the respondent nos. 3 and 4.
Shri S.K. Srivastava, learned counsel for the respondent nos. 1 and 2, on the basis of instructions received by him, states that the respondent nos. 1 and 2 are willing to consider the proposal for One Time Settlement given by the petitioner by the Application dated 24.1.2011/17.2.2011 provided the petitioner deposits an amount of Rs. 4.25 lacs, as mentioned in the aforesaid Communication dated 22.2.2011, by 19th May, 2011.
Shri B.D. Madhyan, learned Senior Counsel assisted by Shri Kailash Nath Kesharwani, learned counsel for the petitioner states that the petitioner is ready to make deposit of Rs. 4.25 lacs, as mentioned in the Communication dated 22.2.2011, by 19th May, 2011.
In view of the above, we dispose of the Writ Petition with the following directions:
(1) On or before 19th May, 2011, the petitioner will deposit an amount of Rs. 4.25 lacs, as mentioned in the aforesaid Communication dated 22.2.2011.
(2) In case, the amount is so deposited by the petitioner within the time granted, the respondent nos. 1 and 2 will proceed to consider the proposal for One Time Settlement made by the petitioner by the said Application dated 24.1.2011/17.2.2011.
(3) The recovery proceedings against the petitioner will remain stayed in the first instance till 19th May, 2011. In case, the petitioner makes deposit as per the Condition No.1 above, the recovery proceedings will continue to remain in abeyance till consideration of One Time Settlement, as mentioned in Condition No. 2 above.
(4) In case of failure on the part of the petitioner in making the deposit, as mentioned in Condition No.1 above, within the time mentioned therein, this order will stand automatically vacated, and it will become open to the respondent nos. 1 and 2 to proceed against the petitioner in accordance with law.
The Writ Petition stands disposed of accordingly with the aforesaid directions and observations.
Order Date :- 6.4.2011 Ajeet