UTTAR PRADESH FINANCIAL CORPORATION Vs. IDRISH

JUDGEMENT

(1.) Heard counsel for the parties.

(2.) This F. A. F. O. is directed against the impugned award dated November 20, 1996, passed by the trial court restraining respondents Nos. 1 and 2 from realising Rs. 8,31,318 from the plaintiffs.

(3.) The facts are that the plaintiffs entered into an agreement for taking a term loan with defendant No. 7, namely, the U. P. Financial Corporation (U. P. F. C.), and under the agreement the U. P. F. C. had granted a term loan of Rs. 92,000 to the plaintiffs and an additional term loan of Rs. 70,000 had been granted to the plaintiffs. When the plaintiffs defaulted, the U. P. F. C. issued a notice under Section 29 of the U. P. State Financial Corporation Act on January 2, 1986, and pursuant to that made an advertisement for sale of the assets of the plaintiff's unit, Star Agro, for the establishment of which the term loan was taken. Pursuant to the advertisement, the plaintiff's unit was sold to the highest bidder, viz., San-jay Kumar Jain, for Rs. 1,60,000 and possession was delivered to the purchaser on April 9, 1988. As full recovery of the outstanding dues could not he made from the sale of the unit of the plaintiffs, the U. P. F. C. issued a personal recovery certificate against the plaintiffs.