THE PRADESHIYA INDUSTRIAL AND INVESTMENT CORPORATION OF U.P. LTD. (PICUP) THROUGH MR. C.B. LAL SR. MANAGER (LAW) Vs. STATE OF UTTARANCHAL AND ORS.

JUDGEMENT

(1.) THIS judgment will dispose of both the above titled petitions together as they have arisen out of the same Complaint No. 1253 of 2004, filed in the Court of Judicial Magistrate, Kashipur and the order of cognizance nay the order of issuing non -bailable warrants thereafter against Petitioner Sri Jayant Verma (Manager Law, Pradeshiya Industrial Investment Corporation of Uttar Pradesh Limited) (hereinafter called as PICUP) passed in the said complaint case.

(2.) HAVING heard the Learned Counsel of both the parties, it transpires that M/s Shivangi Crafts Limited applied for a loan of Rs. 7,25,00,000/ - from PICUP, which is State Government body for sanctioning loans to develop industries in the State. This PICUP, virtually a middle body, plays the role to coordinate in sanctioning the loans, which is ultimately granted by Industrial Development Bank of India (hereinafter called as IDBI).

(3.) THE circumstances changed and the company passed a resolution on 15.11.1997 not to take loan from PICUP (already sanctioned) after taking stock of the situation of the market being non -profitable for the ensuing business proposed to be commenced on the basis of the said loan. Consequently, the company wrote repeated letters on 7.2.1999, 11.2.1999, 15.2.1999 and ultimately on 18.2.1999 apprising PICUP of its changed motives and asked to return the amount of Rs. 7,25,000/ -, which was so deposited by it to PICUP.