STATE OF U P Vs. HINDUSTAN UNILEVERS LTD

JUDGEMENT

(1.) LEAVE granted. Heard the learned counsel.

(2.) THE U. P. Cooperative Spinning Mills Federation Ltd. (hereinafter 'federation', for short) invited applications for private placement of debenture bonds in the year 1998 representing that the repayment thereof was unconditionally and irrevocably guaranteed by the U. P. Government. The State Government issued government Order dated 12. 8. 1998 guaranteeing the repayment of the principal and interest in respect of debenture bonds issued by the U. P. Cooperative Spinning Mills federation Ltd.

(3.) THOUGH several contentions were urged by the State Government and the federation, when the matter came up today, the learned counsel for the State government handed over a Pay Order for Rs. 15,00,000/- (Rupees fifteen lakhs) to the learned counsel for respondent towards the refund of the principal amount. In regard to interest, the learned counsel for the Federation and the State Government submitted that as the Federation is under liquidation and as the State Government has paid the principal amount, the respondent should be relegated to other remedies in law for recovery of interest.