INDIRA NIGAM Vs. STATE OF U.P.

JUDGEMENT

(1.) The petitioners, partners of M/s Modern Printing Press has come up in this writ petition praying for quashing the recovery certificate dated 1.9.2005, issued by the respondent no. 5, National Small Industry Corporation Ltd. to the Collector for recovery of Rs. 5,34,994/- as arrears of land revenue.

(2.) Affidavits having been exchanged between the parties, with the consent of learned counsel for the parties, the writ petition is being finally decided.

(3.) Brief facts of the case, which emerged from the pleadings of the parties are; an application dated 2.8.1984 was submitted by M/s Modern Printing Press with petitioners and two other persons being its partners to the respondent no. 5 for purchasing an automatic Stop Cylinder Letter Press machine under hire purchase scheme. The respondent no. 5 (hereinafter referred as Corporation) sanctioned the project and an agreement dated 9.1.1985 was entered between the firm and the Corporation for hiring the machine on hire purchase price of Rs. 1,94,894/-. The amount was repayable in six monthly instalments extending to seven and half years. The hire purchase amount was paid by the Corporation directly to the manufacturer. The machine was sent to the petitioner's premises on 4.6.1985. There was some delay in installation of machine by the petitioner. The machine was installed on 7.12.1986. On complaint submitted by the petitioner that machine is not functioning well an inspection was carried out on 28.8.1987 whereafter machine become operational. The petitioner again submitted complaint that machine was not functioning well. Certain correspondences took place between the Corporation and the Firm. The machine was taken back by the Corporation on 26.9.1995 due to non payment of instalments by the firm. A letter dated 6.10.1995 was issued to the petitioner by the Corporation that outstanding amount of Rs. 3,57,215/- be paid within ten days from the receipt of the letter failing which the machine shall be sold of and consideration shall be adjusted. The Corporation sent recovery certificate dated 1.9.2005 to the Collector for recovery of amount of Rs. 5,34,994/- as arrears of land revenue. This writ petition was filed by the petitioner on 6.2.2006 challenging the aforesaid recovery certificate. On 8.2.2006, the writ petition was entertained and an interim order was passed staying the recovery till 20.3.2006. The interim order was continued thereafter.