J.N. RAINA Vs. STATE OF HARYANA

JUDGEMENT

(1.) THIS petition filed under Article 226 of the Constitution seeks a writ of certiorari for quashing order dated 17.6.1982, Annexure P-2 issued by the Collector, Chandigarh to the Collector, Delhi for effecting recovery from the petitioner as he had stood as a guarantor for the loan advanced to M/s. Excelsior Plants Corporation Limited, New Delhi.

(2.) THE facts in brief are that on 30.8.1972 a loan was advanced to M/s. Excelsior Plants Corporation Limited and a bond of guarantee was executed by the petitioner ensuring that in case there is a default by principal debtor, the loan will be recoverable from him. To this effect a bond of guarantee was duly executed by the petitioner in favour of respondent No. 2. After various steps having been taken, it was concluded that the amount was not recoverable from the principal debtor and a recovery certificate was issued on 21.5.1982 by the Collector, Chandigarh to the Collector, Delhi for effecting recovery from the petitioner to the tune of Rs. 17,89,402.19 as was due on that date. He approached this Court challenging the constitutional validity of the Haryana Public Money (Recovery of Dues) Act, 1979 (for brevity, Rs.1979 Act'). The Motion Bench on 21.10.1982 stayed the recovery on furnishing of security by the petitioner to the satisfaction of the Assistant Collector, Delhi. Eventually, the petition was admitted on 6.1.1983 and the interim directions were affirmed.

(3.) LEARNED State counsel has pointed out that constitutional validity of 1979 Act has been examined by a Division Bench of this Court in the case of Vivek Sarin and others v. State of Haryana and others, 1998(2) RCR(Civil) 179 (P&H) (DB) : 1998(2) PLR 226. He has argued that the petition involved only the question of constitutional validity of 1979 Act under which notice of recovery Annexure P-2 dated 17.6.1982 has been issued to the petitioner.