GULAB CHANDRA GUPTA Vs. STATE OF U P

JUDGEMENT

(1.) HEARD learned counsel for the petitioners, learned counsel for the Corporation and learned Standing Counsel for the State.

(2.) THE factual matrix as it involves in the writ petition is narrated in brief that the petitioners, namely, Gulab Chand Gupta and another had jointly purchased plots nos. A -3, A -4, A -5, A -6 situated in Industrial Estate Chaudagra, Tahsil Bindaki, District -Fatehpur from Uttar Pradesh Financial Corporation (For short "UPFC") by registered sale deed dated 3.9.2002. The aforesaid plots were earlier allotted to M/S Gyatri Gases (Private) Limited by the District Industry Centre, Fatehpur. It appears that the M/s Gyatri Gases (Private) Limited had taken a financial assistance from the UPFC and had mortgaged the lease deed to UPFC. However, as M/s Gyatri Gases (Private) Limited could not repay the loan due to the UPFC, accordingly, the UPFC has proceeded under Section 29 of the State Financial Corporations Act, 1951 for auction/sale of the aforesaid industrial units and made advertisement for the same. In pursuant to the advertisement, the petitioners had purchased the Industrial Units, Land, Building and Machine etc. It has further been contended that the petitioners have purchased the aforesaid units on assurance given by the UPFC that it was free from all charges and encumbrances and thus in view of the aforesaid sale deed dated 03.09.2002 executed in favour of the petitioners by respondent no. 3 the petitioners became full owners in possession of the aforesaid industrial units. After purchasing the said Industrial units, the petitioners have made huge investment in order to restart the industry, however, they failed in the endeavor and, thus, the petitioners entered into a negotiation to sell the aforesaid Industrial Units to some other party/persons and in pursuant thereto and with the intention thereof the petitioners made an application to respondent no. 2 for issuance of No Objection Certificate (for short "NOC") to enable them to complete the necessary formalities regarding the transfer of lease rights of the aforesaid units, copy of the said application dated 20.08.2012 is on record as annexure no. 2 to the writ petition.

(3.) IT was only on the receiving of the said application for issuing of said NOC, the petitioners received a notice/letter dated 11.09.2012 informing the petitioners that as certain amounts were due against M/s Gyatri Gases Pvt. Ltd. which still remains outstanding, as such until and unless the said amount/due is paid of, NOC cannot be issued. The said letter dated 13.09.2012 has been placed on record as Annexure No. 4 to the writ petition. The amount mentioned in the said letter dated 13.09.2012 issued by the General Manager District Industry Center, Fatehphur mentions principal amount of Rs.2,06,424/ - plus penal interest amounting to Rs.3,10,258/ - and lease rent amounting to Rs. 318/ -. On receiving of the letter/notice dated 13.9.2012, the petitioners were taken by a surprise as they had purchased the land in an auction held by the UPFC which Corporation has exercised the power under Section 29 of the Act and thus, the petitioners realized that they were not liable to pay any further dues of the erstwhile owner namely M/s Gyatri Gases Pvt. Ltd. for which the said letter has been issued. It was under these circumstances and being aggrieved by non -issuance of NOC the present writ petition has been filed seeking the following reliefs: -