S P GUPTA Vs. STATE

JUDGEMENT

(1.) HEARD the learned counsel for the parties and perused the records.

(2.) THE petitioner has preferred this writ petition under Article 226 read with article 227 of the Constitution of India for quashing the proceedings arising out of case No. SDM/cl/2001/ 13, where by a demand has been raised for recovery of a sum of Rs. 1,90,63,344. 40 as arrears of land revenue by U. R Finance Corporation. He further prays for deleting him from the array of judgment debtors in the recovery proceedings.

(3.) THE admitted facts of the case are that M/s. Apex Leathers (P) Ltd. hereinafter called as the borrowing/obligent company, applied for grant of loan and an agreement was executed on 25. 5. 1992 between the company through its Directors and the U. R Financial Corporation, hereinafter referred to as U. P. F. C. Under the agreement, a loan of Rs. 82 lacs was sanctioned by the U. P. F. C. Out of this sanctioned sum a sum of Rs. 74,45. 336/- was paid to the borrower company. For repayment of the loan personal guarantees were given by (1) Sri Sandeep Singhal, (2) Sri Parag Singhal, (3) Sri S. R Singhal, (4) Sri J. S. Gupta, (5) Sri Sadek Chand and (6) Sri V. P Gupta, All the aforesaid six persons were promoters Directors. The loan was repayable in seventeen half yearly instalments upto June, 1999. It is submitted that against the aforesaid loan of Rs. 83 lacs, the borrower company had already paid a sum of Rs. 92,39,255/- till date.