HARIDWAR ASBESTOS ADD CEMENT PRODUCTS PVT. LTD. AND ORS. AND SRI YUNUS Vs. UTTAR PRADESH FINANCIAL CORPORATION AND ORS.

JUDGEMENT

(1.) HEARD the counsel for the petitioners and the respondents in the above two writ petitions. Writ Petition (M/B) No. 1149 of 2005 was filed by the petitioners M/s Haridwar Asbestos and Cement Products Pvt. Ltd. (who for convenience of this Court will be referred to as petitioner No. 1) for the relief that the proceedings initiated by the Uttar Pradesh Financial Corporation (from hereinafter referred to as the "Financial Corporation") under Section 29 of the State Financial Corporation Act, 1951 (from hereinafter referred to as the "Act") are illegal and, therefore, it was prayed that the respondents be restrained from initiating proceedings under Section 29 of the Act against them. It has been further prayed that a writ, order or direction in the nature of mandamus be issued directing the Financial Corporation not to sell the unit of petitioner No. 1 pursuant to the impugned notices given by the Financial Corporation. A final prayer has been made for a writ, order or direction in the nature of mandamus directing the said respondents to restore the possession of the unit back to petitioner No. 1 forthwith.

(2.) THE second writ petition, which is Writ Petition (M/B) No. 1450 of 2006 has been filed by an auction purchaser Sri Yunus who purchased the unit of M/s Haridwar Asbestos and Cement Products Pvt. Ltd. in an auction and now contends that the Financial Corporation, from where the unit has been purchased, refuses to proceed further in the matter and a prayer has been made for a writ, order or direction in the nature of mandamus directing the Financial Corporation to execute a fresh sale deed in favour of petitioner No. 2 in respect of the property purchased by M/s Haridwar Asbestos and Cement Products Pvt. Ltd. in an auction process.

(3.) THE brief facts of this case may be narrated first: